Indian outsourcer Satyam has won government approval to save itself from bankruptcy by selling itself off.

In December Satyam all but imploded - the World Bank banned it from future bids because of bribery allegations, and then company chairman B Raju Ramalinga admitted falsifying accounts for several years by adding $1bn to Satyam's accounts.

The firm has sought to reassure customers and discover just how much money it is holding. The government-appointed board was already looking for rescue bids - that has now been officially approved by the Indian Securities and Exchange Board.

The outsourcer is now free to sell off 51 per cent of itself. Satyam is working out the details of a global competitive bidding process which it will make public shortly.

Satyam's full statement is here.

Various firms have been named as possible bidders including building firm Larsen and Toubro Ltd, along with IBM.

Police and Indian regulators continue to investigate the scandal.

Meanwhile, company auditors PricewaterhouseCoopers are being investigated to find out how it could have missed such a huge fraud. ®