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Satyam: Raju turns to employees for support
December 30, 2008 15:28 IST
Last Updated: December 30, 2008 19:12 IST
Under attack from investors and many of the board members over the Maytas acquisition fiasco, Satyam [Get Quote] Computer Chairman Ramalinga Raju on Tuesday solicited support of employees, saying everything possible was being done to get the company back on track.
At the same time, he hit out at the detractors, including four directors who quit the board over corporate governance issues, saying: 'The board arrived at its decision to bid for Maytas by following all required processes and procedures and while there was a spirited discussion among members, their vote to approve the motion was unanimous.'
Breaking his silence on the embarrassing developments over the last two weeks, Raju said in an open letter to employees that 'please be assured that the Board and the leadership team are doing everything that's possible to get Satyam back on track'.
'We cannot do this without your help. . . I ask for your continued faith in Satyam and for your steadfast focus on your customers, specially in the face of wild speculation and unchecked rumours.'
The letter comes amid reports of uneasiness among the over 50,000 employees of the company, even as speculation was rife that a chunk of its talented employees was already looking for other options.
Raju further assured employees that customers continue to show a high level of trust in Satyam.
"We have also been in contact with many of our investors, and we have taken key steps to regain their confidence. These include strengthening the board by changing its size and composition, and engaging DSP Merrill Lynch to provide strategic advice and options," he added.
The Satyam board is scheduled to meet on January 10, 2009 to consider these options.
The company has suffered a series of embarrassments after its abortive $1.6 billion bid to acquire two firms -- Maytas Properties and Maytas Infrastructure -- promoted by Raju's family and the World Bank's decision to bar the IT major from doing business with it for eight years.
Since then, four directors - Mangalam Srinivasan, Vinod Dham, Krishna G Palepu and Mendu Rammohan Rao -- have resigned, leaving just five members on the Board.
On issues of business strategy, he said the company would continue to focus on its core business.
"Satyam is completely committed to the IT services and BPO business. . . Satyam did not and does not now intend to retreat from IT and BPO services in any way, and going forward, Satyam will focus exclusively on these markets," he said.
"The idea that we could diversify into an unrelated business was rejected by our investors, it was formed with the belief that doing so would not imperil our leadership in our core business or lessen our commitment to it, and that all stakeholders would benefit," Raju said.
Satyam currently has 52,865 employees on its rolls. The $2 billion company has over 650 clients across geographies.
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