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Satyam's path to disaster

January 07, 2009 21:08 IST

Following is the chronological summary of events which saw IT major Satyam Computer Services [Get Quote], founded in 1987, on its path to disaster:

1. December 16: Satyam gets board's approval for acquisition of Maytas Infrastructure and Maytas Properties for $1.6 billion.

2. December 17: Defers Maytas' acquisition on stiff investor resistance.

3. December 18: Schedules board meet for the proposal of buyback of shares on December 29.

4. December 18: British mobile solution provider Upaid files a law suit against Satyam in a district Court in the US over Maytas deal.

5. December 24: World Bank bans Satyam for 8 years on charges of data-theft.

6. December 25: Satyam objects to World Bank's statements; asks Bank to apologise to the company or face legal action.

7. December 25: Mangalam Srinivasan, non-executive and independent director resigns from board.

8. December 27: Postpones board meeting to January 10, 2009 to consider buyback of shares.

9. December 27: Promoters disclose that their entire holding in Satyam pledged with institutional lenders since 2006.

10. December 28: Two independent directors - Krishna G Palepu, Vinod K Dham - resign from the board.

11. December 29: M Rammohan Rao, another independent director, resigns from board.

12. January 1: Satyam-Upaid case hearing over the Maytas deal in Texas court on January 7.

13. January 2: Promoter holding in Satyam drops to 5.31 per cent from 8.27 per cent after sale of pledged shares by lenders.

14. January 5: Satyam brings up old report by research firm Forrester complimenting company's innovation strategy.

15. January 6: IL&FS Trust company sales 2.45 crore shares of Satyam pledged to institutional investors by the promoters

16. January 6: Raju family holding in Satyam falls to 3.16 per cent after sale of pledged share by lenders

17. January 7: Satyam Chairman Ramalinga Raju sends letter to board tendering his resignation and admitting to fraud in accounting books.

18. January 7: Satyam Managing Director B Rama Raju also resigns.

19. January 7: DSP Merrill Lynch terminated its advisory engagement with company.



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