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Govt orders probe into Satyam's Maytas deal
December 19, 2008 09:30 IST
The government is understood to have ordered a probe into Satyam Computer Services' [Get Quote] controversial decision to buy two group-promoted companies and then reversing the deal within a few hours under pressure from investors.
According to official sources, the government will examine if the company had any malafide intention to influence the stock market.
Satyam Computers had on Tuesday announced that it will acquire two group firms - Maytas properties and Maytas Infra for $1.6 billion (about Rs 8,000 crore) as part of its diversification strategy, a move that sparked a row over alleged violation of corporate governance laws.
However, the company had to reverse the decision within a few hours after its scrip nosedived more than 55 per cent on the US bourses.
Sources said the government will examine whether the company indulged in any short selling and whether it wanted to cover its position after the stock prices plummeted.
The ministry of corporate affairs had said it will look into whether the company violated any corporate governance laws while entering into such a deal involving share holders' money.
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