The recently cancelled Satyam acquisition of an infrastructure company was a big blow to Satyam computers . As a shareholder, I am irritated and disappointed with the management team . At a time when credit is tight, they were going to use up all their cash to buy this company. Not only that, they were investing in a company which is not related to their line of business. There was no information on how they valued this company and best of all the promoters had vested interests in this target company
Public pressure resulted in the deal getting cancelled and the govt. has announced an investigation into the whole episode. I would like to see the promoters kicked out of the board. They only hold 8% of the shares and it shouldn't be hard to kick them out. Investors lost Rs 3300 crores in one day. These kind of events, tarnish the image of our country and reduce the foreign investor confidence in the Indian financial system. I hope govt. comes out with some regulations which will prevent such events from happening in the future.
Wednesday, December 17, 2008
Irresponsible Satyam promoters
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india thinking
I don't trust this manangement anymore . Why did they hide the issue with world bank . These are serious charges leveled on Satyam . Where is "Full disclosure" ?
ReplyDeleteI sold all my shares. This management has to go before I can invest in Satyam again.
Shame on Raju . I think more people are involved . One person single handed couldn't have pulled it of . I want to see all his & his families assests seized including the infra companies that they have promoted. I want to see that he is punished severely .
ReplyDeleteHe has destroyed our nation's credibility. I don't understand what the auditors were doing. They need to pay too.
Fraud has to be governed by Corporate Compliance than Individual ethics especially with our governing Indian Companies Act of 1972. so it calls for ammendments in ICA and auditors should be taken to court as financial audits are against proofs and cannt be skipped.
ReplyDeleteI disagree with shame and dstroying nations credibility (pls donot use such high-end words!) There hasnt been any large economy without such scams.
Imagine a person spent over 20 years to bring a company to $2bn levels.. Something terrible has gone wrong and to err is human.
esp. satyam has some very solid clientele and some large customers in thier portfolio. Am sure to save the goodwill, the best option is merger and considering thier history with HCL, that looks more likely to me..