India May Ease Takeover Rules for ‘Special Cases’

India’s market regulator said it will look at easing takeover rules in “special cases,” ahead of a possible acquisition of Satyam Computer Services Ltd., the software company at the center of India’s biggest fraud inquiry.

Satyam’s board has asked for exemptions from the takeover rules, Securities and Exchange Board of India Chairman C.B. Bhave said at a press briefing after the regulator’s board meeting in Mumbai today. Buyers must now offer to pay the higher of the average share price for the past 26 weeks or two weeks.

A relaxation of the rules will make it easier for suitors including Larsen & Toubro Ltd., India’s biggest engineering company, to bid for Hyderabad-based Satyam. Larsen is among at least four bidders that want to buy a controlling stake.

“We recognize the need for this and will look to make amendments for such special cases,” Bhave said. MORE...