December 19, 2008
The government is understood to have ordered a probe into Satyam Computer Services' [Get Quote] controversial decision to buy two group-promoted companies and then reversing the deal within a few hours under pressure from investors.
According to official sources, the government will examine if the company had any malafide intention to influence the stock market.
Satyam Computers had on Tuesday announced that it will acquire two group firms - Maytas properties and Maytas Infra for $1.6 billion (about Rs 8,000 crore) as part of its diversification strategy, a move that sparked a row over alleged violation of corporate governance laws.
However, the company had to reverse the decision within a few hours after its scrip nosedived more than 55 per cent on the US bourses.
Sources said the government will examine whether the company indulged in any short selling and whether it wanted to cover its position after the stock prices plummeted.
The ministry of corporate affairs had said it will look into whether the company violated any corporate governance laws while entering into such a deal involving share holders' money.
Sunday, January 25, 2009
Shares buyback: Satyam board to meet on Dec 29
Satyam Computer Services said on Thursday its board will meet on December 29 to consider a share buyback proposal.
"A meeting of the board of directors of the company will be held on December 29, 2008, to consider the proposal for buyback of shares of the company," Satyam said in a regulatory filing to the stock exchanges.
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.
It was later trading at Rs 172.75, up 9.30 per cent on the BSE in the late afternoon trade.
On Wednesday, the scrip had plunged as much as 30 per cent to close at Rs 158.05 after touching its 52-week low.
The company on Tuesday had announced a $1.6-billion deal to acquire Maytas Properties and Maytas Infrastructure -- companies run by Satyam chief Ramalinga Raju's sons B Rama Raju and Teja Raju.
PTI
"A meeting of the board of directors of the company will be held on December 29, 2008, to consider the proposal for buyback of shares of the company," Satyam said in a regulatory filing to the stock exchanges.
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.
It was later trading at Rs 172.75, up 9.30 per cent on the BSE in the late afternoon trade.
On Wednesday, the scrip had plunged as much as 30 per cent to close at Rs 158.05 after touching its 52-week low.
The company on Tuesday had announced a $1.6-billion deal to acquire Maytas Properties and Maytas Infrastructure -- companies run by Satyam chief Ramalinga Raju's sons B Rama Raju and Teja Raju.
PTI
Satyam may launch shares buyback to appease investors
December 17, 2008
Having infuriated investors with a deal that would have propped up companies of its promoters, Satyam Computers is now looking to mollify shareholders through rewards such as a share buyback or dividend payout.
"We will take the decisions in few days. In the light of whatever has happened, buyback is one of the option... (it) being one of the investor friendly measures that we may consider. We are also discussing whether it will be dividend or buyback," Satyam's CFO Srinivas Valdamani
The company on Tuesday announced a $1.6 billion deal to acquire Maytas Properties and Maytas Infrastructure, companies run by Satyam chief Ramalinga Raju's sons B Rama Raju and Teja Raju.
Investors' opposition forced Satyam to call off the deal on Wednesday.
Valdamani said the company has a cash surplus of $1.1 billion and it was meant for inorganic and organic growth and corporate actions like giving dividends and bonus share or a buyback.
(PTI)
Having infuriated investors with a deal that would have propped up companies of its promoters, Satyam Computers is now looking to mollify shareholders through rewards such as a share buyback or dividend payout.
"We will take the decisions in few days. In the light of whatever has happened, buyback is one of the option... (it) being one of the investor friendly measures that we may consider. We are also discussing whether it will be dividend or buyback," Satyam's CFO Srinivas Valdamani
The company on Tuesday announced a $1.6 billion deal to acquire Maytas Properties and Maytas Infrastructure, companies run by Satyam chief Ramalinga Raju's sons B Rama Raju and Teja Raju.
Investors' opposition forced Satyam to call off the deal on Wednesday.
Valdamani said the company has a cash surplus of $1.1 billion and it was meant for inorganic and organic growth and corporate actions like giving dividends and bonus share or a buyback.
(PTI)
Satyam under fire for $1.6 bn Maytas deal
December 17, 2008
Satyam Computer Services, India's fourth-largest software services provider, today came under fire from institutional investors after the company announced its acquisition of two companies -- Maytas Infra and Maytas Properties--for $1.6 billion (around Rs 7,680 crore).
Satyam Computer Services, India's fourth-largest software services provider, today came under fire from institutional investors after the company announced its acquisition of two companies -- Maytas Infra and Maytas Properties--for $1.6 billion (around Rs 7,680 crore).
The company's board had earlier in the day approved buying 51 per cent in Maytas Infra for $1.3 billion (around Rs 6,240 crore) and 100 per cent of Maytas Properties for $300 million (Rs 1,440 crore).
Satyam proposes to acquire 31 per cent in Maytas Infra from the promoters at a price of Rs 475 a share and make an open offer for an additional 20 per cent. The open offer price has been approved at Rs 525 a share and is subject to change according to the Takeover Code norms.
(Business Standard)
Satyam Computer Services, India's fourth-largest software services provider, today came under fire from institutional investors after the company announced its acquisition of two companies -- Maytas Infra and Maytas Properties--for $1.6 billion (around Rs 7,680 crore).
Satyam Computer Services, India's fourth-largest software services provider, today came under fire from institutional investors after the company announced its acquisition of two companies -- Maytas Infra and Maytas Properties--for $1.6 billion (around Rs 7,680 crore).
The company's board had earlier in the day approved buying 51 per cent in Maytas Infra for $1.3 billion (around Rs 6,240 crore) and 100 per cent of Maytas Properties for $300 million (Rs 1,440 crore).
Satyam proposes to acquire 31 per cent in Maytas Infra from the promoters at a price of Rs 475 a share and make an open offer for an additional 20 per cent. The open offer price has been approved at Rs 525 a share and is subject to change according to the Takeover Code norms.
(Business Standard)
Satyam calls off $1.6-bn Maytas deal
December 17, 2008
Hit by the adverse market reaction, homegrown Satyam Computers on Wednesday called off its proposed $1.6-billion acquisition of two companies promoted by the IT major Chief Ramalinga Raju's son.
Announcing the decision to call off the acquisition of Maytas Properties and Maytas Infrastructure "in light of the setback received from the investors community," Raju said: "We have been surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition."
The reversal comes within a day of the Satyam board approving the decision to acquire Maytas Properties for $1.3 billion and a majority 51 per cent stake in Maytas Infrastructure for $300 million.
(PTI)
Hit by the adverse market reaction, homegrown Satyam Computers on Wednesday called off its proposed $1.6-billion acquisition of two companies promoted by the IT major Chief Ramalinga Raju's son.
Announcing the decision to call off the acquisition of Maytas Properties and Maytas Infrastructure "in light of the setback received from the investors community," Raju said: "We have been surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition."
The reversal comes within a day of the Satyam board approving the decision to acquire Maytas Properties for $1.3 billion and a majority 51 per cent stake in Maytas Infrastructure for $300 million.
(PTI)
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