Family bailout??
Apparently 24 hours is a lot of time for our corporate czars.
Satyam computers announced a deal which was ridiculous to say the least, only to do an about turn in 12 hours.
Late yesterday evening, Satyam announced that they are acquiring stakes in Maytas Infra (51% stake, listed entity) and Maytas Properties (100% stake, private company) for a whopping Rs.8000 crore. And that is almost the entire current cash reserves of Satyam. And just in case if we wondering about the connection between an IT services company and construction company, Maytas Infra and Maytas properties are promoted by Ramalingam Raju’s sons!
The market spoke in the only language our Corporate czars will understand. Bloodbath ensued. Satyam’s ADR was hammered by 50 odd %.
No prizes for guessing that they called off the deal in a span of 12 hours!
This one is a classic case of lack of scruples by the supposedly ‘clean’ IT biggies. What was even more ridiculous was the explanations offered by Mr. Raju backing this decision.
Its a sad reflection of the state of affairs that politicans wear white dhotis and speak in regional languages while our ‘ethically driven’ business tycoons wear Raymond suits and talk english, apart from that, they are all the same.
December 17th, 2008 at 12:46 pm
I was always suspicious about Sathyam ?. I pulled out my investments in Sathyam long ago…not being comfortable with the management.
BTW - Welcome back…wondering what happened to you !!
December 18th, 2008 at 12:45 am
NV sir
This was a some kind of corporate governance lesson for me!
I never had any stakes in satyam too.
Avanavan kayile paisa illama irukaan, these guys were planning to throw a good 8000 crores in hard cash to buy two ‘kudumba’ companies - one of which is not even listed and which incidentally was valued much higher than the listed one.
The Chairman is not positive about the prospects in an industy in which he is No 4 or 5 in the country yet is positive about his son’s real estate and infra companies. If the intention was really what they say, they could’ve very well done it without the cash outflow…
‘ulladhum pochuda’ ngra kadhaya now satyam was down a good 30% y’day.
December 18th, 2008 at 12:47 am
And I have not going anywhere.. i have a different place to write on a different subject
December 18th, 2008 at 2:57 am
What place is that may I know please?
SEC / SEBI - Must investigate the buyings and selling of yesterday !! The Rajus might have made a lot of money !
December 19th, 2008 at 12:12 am
Maytas is a palindrome of Satyam
December 19th, 2008 at 9:29 am
Satyam’s past is like that wonnly. They were a family of land hoarders , buying off grape vineyards ( and that started a trend robbing Hyderabad of local grapes
) and getting them converted into plots for sale. It was the money from that process, that funded Satyam in its initial days before all this corporatization and all that. It is only in the SEZ land lottery that Maytas emerged as a front for grabbing money at a much larger scale and for doing it in a CORPORATE manner, whatever that means. In times of troubles,they were just going back to their roots I think. But weren’t able to do so..
December 19th, 2008 at 9:31 am
I meant grabbing land *
December 19th, 2008 at 10:30 am
karthik
yeah..one of my friend told me that…aprom dhaan kavanichen… idhuku onnum kuraichal illa…
December 19th, 2008 at 10:33 am
curdrice,
>>whatever that means
it means talking about ‘unleashing value for the shareholders’ when they are indulging in such noble deeds
Summa ange ange ‘maane thaena’ madhiri IPO, EBITDA, Capex, Valuation, adhu idhu nu pottukanum