Scam

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Sebi’s NSDL orders: why the fuss?

Summary: Sebi has released two orders which will ask the National Securities Depository Ltd (NSDL) to conduct internal inquiries into systemic and procedural lapses that led to the IPO scam reaching such large proportions without being detected. Though the committee has clarified that its action is not punitive in nature, which might make one wonder what the fuss was all about, the issue is how individual responsibility –as asked by the committee- will be determined.

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Mahindra Satyam spreads Diwali joy, reverses pay cuts

Satyam Computer Services (rebranded as Mahindra Satyam) today announced that it will restore variable pay to all its employees. The decision will win the hearts of all Satyam’s employees, who were devastated by the scam. After the relief that came with Tech Mahindra acquiring the company, getting back their monetary benefits will be a boost. Continue Reading →

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Tech Mahindra gets control over Satyam board

Mahindra Satyam Logo

The government has further reduced its role in Satyam Computer Services (rebranded as Mahindra Satyam), after Tech Mahindra completed the open offer process and then followed up by hiking its stake through a preferential allotment. That completes a major part of its task ensuring that Satyam stays afloat.
 

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Four Tech Mahindra nominees appointed to Satyam Computer’s Board

Tech Mahindra’s acquisition of Satyam Computer Services became more formal, after the appointment of four directors on its board. Vineet Nayyar, CP Gurnani, Sanjay Kalra and Ulhas N Yargop, all senior management personnel from Tech Mahindra, have been appointed on Satyam’s board effective June 1, 2009. The total board strength will go up to 10, including the six government appointed nominees, with Kiran Karnik as the chairman. Over a period of time, the government’s role in the board can be expected to diminish as they hand over charge to the new owners. Continue Reading →

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Satyam Computer sold to Tech Mahindra

Satyam Computer Services has found a new home in Tech Mahindra. It will pay Rs 58 a share, or a premium 23% premium over Friday’s close, to acquire a 31% stake in Satyam. That speaks for Satyam’s value even after all the fudging of books or for Tech Mahindra’s desire to acquire Satyam. Either way, it’s an outcome that will please Satyam’s shareholders, board and the government itself. The shareholders got a good price, the board has managed the sale process without any glitches and the government would be happy that it remains in Indian hands.

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Satyam sale enters final stage today

The board is expected to open financial bids on Monday submitted by a few bidders remaining at the last stage. Among them are believed to be Tech Mahindra, L&T, Cognizant Technologies and some private equity funds. If the gap between the first and losing bids is less than 10%, then there will be open auction. The highest bidder in the auction will be declared the new owner.
 

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Satyam’s new board inspires confidence, but needs reinforcements

The government moved swiftly and nominated three directors for the new board of Satyam Computer Services. Satyam’s three new directors are HDFC chairman, Deepak Parekh, a veteran businessman and troubleshooter; Kiran Karnik, Nasscom’s past chairman and CS Achuthan, the former presiding officer of the Securities Appellate Tribunal. These are good choices to inspire confidence.
 

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Satyam’s board dismissed, government nominated board to step in after a week

The government acted in time to stop tomorrow’s board meeting of Satyam Computer Services. Otherwise, a 3-member board would have met tomorrow, to consider the resignations of its chairman and managing director and discuss options before the company. This is the same board, down from its original strength of nine, which has presided over the worst corporate scam in the new millennium in India. Any decision of this board would have been viewed with suspicion.
 

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