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.
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.
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.
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.
Mahindra Satyam said it will withdraw the petition filed against the Tax Department challenging its direction to pay tax.
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.
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.
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.
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.
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 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.
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.
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.
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.
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).
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.
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.
The company's consolidated revenues surged by 27.01 per cent.
The board has the power to appoint a professional even without a formal application if found apt for the job, the source told PTI.
Tech Mahindra, the new owner of Satyam, has advised the crisis-hit IT firm's shareholders to wait till June 22, the last date for revising the offer price, before tendering their shares.
Satyam Computer Services Ltd said it will provide consulting services to Texas InstrumentsÂ’ incorporated digital signal processor customers.
Engineering major L&T on Monday said it will not dilute stake in IT major Satyam, where it lost the race to Tech Mahindra for 31 per cent strategic holding, and exuded confidence that the new owner of the Hyderabad-based giant would add value for shareholders.
Sources close to Mohamed Mushin say he regrets the indiscretion of purchasing the shares that he did, and even though it was perfectly legal, it gave the perception of conflict of interest, that his buying them under the Friends and Family IPOs seemed as it was a quid pro quo by the two companies that had secured handsome Bank contracts.
Chartered accountants body ICAI on Saturday served a showcause notice on auditor PriceWaterhouse and asked it to submit balance sheets of Satyam Computer audited by it in the last five years.
For Nasscom the priority now is to see that business continues for Satyam. The IT-BPO union Unites Professionals had said that if there is a layoff they will step in.
In fact, the ministry of corporate affairs announced that role of directors and auditors at Satyam will be scanned by ICAI and the apex body of company secretaries.
The trading remains halted as of now in securities of Satyam in New York and Amsterdam exchanges, an NYSE Euronext spokesperson said in an e-mailed statement. On January 7, the New York Stock Exchange halted trading in Satyam Computer Services Ltd after Satyam stock plunged by over 90 per cent to $0.85 in pre-market trade in the US.
Satyam Computer Services, in the eye of a storm for financial wrong doings, will be stripped off the Golden Peacock Award -- the very laurel it used for trumpeting its corporate governance norms when the controversy broke out.
Existing investors, who have bought at higher levels of Rs 200 and above, should remain invested for at least a quarter until further clarity emerges from the bidding process.
The company's move to mollify shareholders comes after it raised investor ire on its proposed $1.6-billion acquisition deal, which had to be called off. After suffering a severe battering on Wednesday, Satyam shares surged 13.88 per cent to an intra-day high of Rs 180 on Thursday on the Bombay Stock Exchange.
The Securities and Exchange Board of India (Sebi) has allowed Price Waterhouse to cross-examine some of the entities involved in the Satyam scam. The capital market regulator has, however, refused permission to cross-examine the erstwhile top brass of Satyam, including Ramalinga Raju (former chairman) and Vadlamani Srinivas (former senior vice-president & CFO).
Nasdaq-listed Sify Ltd said on Thursday that Infinity Capital, a company controlled by Silicon Valley entrepreneur Raju Vegesna
Hinting towards a possible takeover of Satyam Computer, engineering major Larsen & Toubro on Friday raised its stake in the beleaguered IT firm to 12 per cent through open market share purchases.
Satyam shares on Friday received a severe lashing on the bourses with its shares plunging as much as 84 per cent to just Rs 6.30, but later recovered some of the losses to settle around Rs 20 level.
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