Talk of Takeover Follows Trouble at India's Satyam Computer Services

Ann All

Troubles continue to multiply for Satyam Computer Services, India's fourth-largest outsourcing company.


Last week, the World Bank revealed it had imposed an eight-year ban on doing business with Satyam, citing problems including inappropriate benefits given to bank staff and improper documentation of its contracts with subcontractors.


Because I wasn't working the day after Christmas, I initially missed this story. When a colleague brought it to my attention, I speculated that Satyam could become an acquisition target, perhaps for a multinational services provider like IBM or Accenture. That's the angle being reported by Reuters, which notes that Satyam has employed Merrill Lynch to help it determine how best to boost the company's value for shareholders.


The company's stock price plummeted on both the New York Stock Exchange and India's Bombay Stock Exchange after shareholders balked at a $1.6 billion deal to acquire construction and real estate companies backed by Satyam Chairman B. Ramalinga Raju and his two sons. Following the aborted deal, four members of the company's board of directors resigned, reports The Hindu.


Satyam's stock rose 9 percent on Indian exchanges yesterday, thanks to the takeover talk, according to a story in The Economic Times.

Add Comment      Leave a comment on this blog post
Dec 30, 2008 4:28 AM swaminathanpattabhiraman swaminathanpattabhiraman  says:
sir,rajus and his group burning mid night candle to shuttle the proposed Jan.10 2009 board meeting.they have no quarums (lack of independent directors) - they started talking of buying time upto June 2009 - by this time stock prices will come down and through third party rajus can acquire the share from dust bindsthey demand flush and blood from their investors. Reply
Mar 14, 2011 10:58 AM wide bay computer wide bay computer  says:

I still remember when the satyam went down . Satyam has been a really good company in IT . so i hope it does well in 2011

Mar 20, 2011 8:39 AM it managed services it managed services  says:

Just came to know that world bank has imposed a 8 year ban .. they have done the right thing . satyam should be punished for the fraud done . thanks for the article


Post a comment





(Maximum characters: 1200). You have 1200 characters left.



Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.