Thursday, December 18, 2008
Satyam-Maytas "unfair" deal off
Financial crisis call for desperate actions. India's fourth largest IT services firm Satyam Computer was trying to acquire 100% stake in Hyderabad-based Maytas Properties for $1.3 billion and was going to pick up a 51% in public listed firm Maytas Infra for $300 million. The total deal value was pegged at $1.6 billion (Rs 8,000 crore). The smart move by Satyam owners (hold just 8% ) to get the cash move into their pockets and in the process make Maytas come out of the trouble times.
"Nobody can take shareholders for a ride" that’s the message that’s gone out loud and clear to the owners , promoters of Satyam Computers.
I fail to understand what are the Independent Directors doing ? They are on the board on the company to take care of the interests of the company but it seems they failed in their duties to voice concerns over the unfair deal.
Also a larger question about the corporate governance of Satyam ( it received award in September 2008 for good corporate governance ).
Where do Satyam go from here ? they may buy back the shares and it is difficult for the company to come out of this bad image it created for itself