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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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