Analysts are optimistic on absorption of new clients, growth possibilities under Tech Mahindra. For Tech Mahindra, the biggest positive is that the two companies have synergies in service offerings and client portfolio, says Sabyasachi Satpathy, director and co-founder, Mindplex Consulting. Satyam will give Tech Mahindra capabilities in enterprise resource planning, systems integration, as well as vertical expertise in the embedded, manufacturing and insurance space.
The chartered accountants body ICAI on Tuesday constituted a six-member special committee to look into the auditing of crisis-hit Satyam Computer, whose disgraced founder chairman Ramalinga Raju has confessed to fudging accounts.
A union of IT and BPO workers has written to the Election Commission to halt the sale process of fraud-hit Satyam Computer until a new government takes over and current investigations being carried out by CBI reach a logical conclusion.
With the developments in Satyam Computer unfolding shocking irregularities, Wipro Technologies, a NYSE-listed company, on Wednesday said this incident is one of its kind and is unlikely to affect the industry.
"The new owner has lost no time in communicating that it is performance which will matter," the official said. Those employees who are not pliable enough to meld in these new roles may be asked to leave the company, he said, adding that integration was on the cards in verticals like telecom, which is the core strength of Tech Mahindra. Meanwhile, Ram Mynampati -- former Satyam executive director -- is understood to have quit the company.
Meeting agenda to go beyond buyback.
Satyam Computers' independent directors are mounting pressure on founder B Ramalinga Raju to reveal details of the controversial board meeting that proposed the acquisition of two promoter-related companies, after a director resigned yesterday owning moral responsibility.Directors want Satyam's founders to make public the minutes of the meeting at which around Rs 5,500 crore of the company's cash was proposed to be paid to acquire Maytas Infra and Maytas Properties.
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The fraud was disclosed by Satyam founder Ramalinga Raju himself in January.
Re-constructing what Mr Raju did, that was the key shortcoming in his plan for grand larceny. The more you think of what has happened to Satyam and its jailed chairman, the more obvious it becomes that the problem was the failure to realise that while he might get away with stealing eggs, the goose itself should not be killed.
"Satyam will give us the scale. This will make us stronger," says Phaneesh Murthy, CEO of the Freemont (California)-based IT services provider, iGate Corporation, and one of the suitors of the beleaguered IT corporation.
The government said on Wednesday its 'job is done' in handling the crisis-ridden Satyam, which posted a standalone net profit of Rs 181 crore (Rs 1.81 billion) in October-December quarter, and the company board can decide on sending back the nominee directors. Following disclosure of accounting fraud by founder chairman of Satyam, B Ramalinga Raju, on January 7, the government superseded the board of the IT company and appointed its own nominees to run the company.
"I feel Sebi as a main regulator should have been give a proper opportunity to question them (Satyam management) because Sebi officers have the best technical knowledge to look at the accounts and everything," former Karnataka IT secretary Vivek Kulkarni said.
Terming disclosures of financial wrong-doings at Satyam as an event of 'horrifying magnitude,' the Securities and Exchange Board of India on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses.
Terming disclosures of financial wrong-doings at Satyam as an event of 'horrifying magnitude,' the Securities and Exchange Board of India on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses.
The government is understood to be in favour of selling a 51 per cent stake in the beleaguered Satyam Computer Services, so that the ailing firm can raise sufficient funds to meet its working capital expenses and liabilities from the class-action suits.
After hearing a petition filed by Satyam on Wednesday, CLB ordered that the company could conduct an open transparent auction process for inducting a strategic investor.
Sources said that the new management made a formal announcement before senior management personnel on Thursday on the issue of reducing manpower by up to 14,000 people.
The promoters of Satyam Computers, currently facing the wrath of shareholders over corporate governance issues, used to own as much as 25.60 per cent equity in the company till few years ago before reducing their stake in phases.
Sources close to the development said that as of now, the court has advised the company to wait for the judgment of a similar case that is pending before Andhra Pradesh high court.
Proof of disgraced Satyam founder Ramalinga Raju's political influence--an issue that is being widely discussed following his January 7 confessions of fraud--was strongly in evidence as far back as 2002, when his company was at the height of its success.
Sebi, which is probing charges of insider trading in the Satyam case, sought a day's custody of Ramalinga Raju and Rama Raju, who are currently in judicial custody. The regulator's request for a day's custody of the Raju brothers, however, was turned down by the sixth additional chief metropolitan magistrate on January 23.
Mahindra Satyam chairman Vineet Nayer said they would stick to the June 30-deadline set by the Company Law Board to submit the restated accounts.
The counsel for Mahindra Satyam, told the court that the CBI has locked both the premises eversince it took over the investigations into the case in February last year.
The government is planning to nominate full-time directors while inducting the remaining seven members in the reconstituted board of Satyam Computer Services Ltd, said a top corporate affairs ministry official. The ministry of Corporate Affairs (MCA), which got an interim order from the Company Law Board to supersede the existing board of the Hyderabad-based company, is planning to make the announcement within a week to ensure smooth functioning at Satyam.
The government does not see any conflict of interest in HDFC chairman Deepak Parekh and former Nasscom President Kiran Karnik, who are directors on the board of Satyam's competitors, being on the troubled company's board.
Satyam Computer moved a step closer towards finalising bids for selling a majority stake in the trouble-torn IT company with the board meeting investment bankers on Thursday.
The Company Law Board has asked Satyam's interim management for not implementing the decisions of the board, but has allowed it to continue its business, a senior executive of the firm said in Hyderabadon Saturday.
Reports say that law firms in the US have begun filing class-action suits against Satyam and its beleaguered executives for fraud. Two such class action lawsuits -- one by a US law firm Izard Nobel LLP and the other by an investor in Satyam ADS -- have been filed in a district court in New York.
On the conclusion of the mandatory open offer to shareholders of Satyam Computers, the new owner, Tech Mahindra, has a little over 42 per cent stake in the company, as against the original plan of acquiring a total of 51 per cent of the equity.
Millions of shareholders would be hurt by the developments as the Satyam management was not fair to them, said the official, who did not want to be named. The SFIO investigation would form part of the coordinated action by all the regulatory and enforcement agencies, the official said.
Satyam Computer Services Ltd said it will provide consulting services to Texas InstrumentsÂ’ incorporated digital signal processor customers.
According to sources, nearly, 380 employees, who were on the virtual pool, were asked to join back the company. Earlier, Tech Mahindra, the new owner of trouble-torn Satyam, had identified and put 8,000-10,000 surplus employees of the IT firm under a programme called -- virtual pool -- where in an employee is paid part of the salary and retained on job.
Satyam Computer Services did not consult Mendu Rammohan Rao, dean of the Indian School of Business and an independent director on the board of India's fourth largest IT services provider, when it called off the deal to acquire Maytas Infra and Maytas Properties following shareholder protests. Rao had chaired the board meeting that endorsed the company's proposal to buy the two firms linked to the family of Satyam's founder and chairman B Ramalinga Raju.
In the face of surge in stock prices of Satyam to about Rs 81 a share on the eve of the open offer for beleaguered company, its new owner Tech Mahindra said it will not hike the offer price.
The company had a net profit of Rs 4 crore (Rs 40 million) in January this year, Satyam said in a regulatory filing to the stock exchanges. The total income in February stood at Rs 637 crore (Rs 6.37 billion) while in January it was at Rs 647 crore (Rs 6.47 billion).
The board will make the financial and legal data available to those shortlisted companies who will qualify in the EoI criteria.
In a filing to the Bombay Stock Exchange, Satyam Computer said the last date by which letter of offer will be dispatched to the shareholders has been revised to June nine, from the earlier scheduled date of June three. Further, the last date of withdrawal by shareholders has also been revised to June 26, from the earlier June 27.
Mahindra Satyam said it will withdraw the petition filed against the Tax Department challenging its direction to pay tax.
The board has the power to appoint a professional even without a formal application if found apt for the job, the source told PTI.
