tag:blogger.com,1999:blog-19649274.post4424343660120945314..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Crisis at SatyamAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-19649274.post-50213959989622883892009-09-10T12:51:29.167+05:302009-09-10T12:51:29.167+05:30Chairman of Satyam Computers, B Ramalinga Raju had...Chairman of Satyam Computers, B Ramalinga Raju had a heart attack at 8 pm on Monday 7th September, 2009. After the Heart attack he was taken to government-owned Nizam’s Institute of Medical Sciences (NIMS) at Panjagutta. He was immediately taken to the ICU. Now his condition is said to be stable.Rebecahttp://www.asiarooms.comnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-28878116481024105502008-12-27T02:47:00.000+05:302008-12-27T02:47:00.000+05:30There are some interesting comments on this blog p...There are some interesting comments on this blog post <A HREF="http://www.rgemonitor.com/asia-monitor/254848/crisis_at_satyam" REL="nofollow">here</A>.Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-18293304850069458742008-12-24T16:50:00.000+05:302008-12-24T16:50:00.000+05:30When the investors around the globe are so jittery...When the investors around the globe are so jittery, an event such as this makes the things worse for Indian Markets. Whats the difference between this and the episode of Bernard Madoff? Both had access to someone else's money, and played with the money without any thought of responsibility. I respect the acheivements of Satyam's managers in last 15 years, but that in no way gives them the right to play with someone elses investment. There are more budding companies in India, who need global investors. An episode such as Satyams seriously dents opportunities.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-82305265534491852512008-12-24T16:09:00.000+05:302008-12-24T16:09:00.000+05:30While I feel a management change must be forced, I...While I feel a management change must be forced, I understand it is not so easy and has not happened in India before, at least one that is forced by MFs, PEs or FIIs. MFs and investors in India have largely stayed away from such a move for a simple reasons i.e. finding a new management is easier said than done. and there is little guarantee the new professional management will be the best.Vaidyanathan Iyerhttps://www.blogger.com/profile/02183457336511819058noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-15522328476778537752008-12-24T00:20:00.000+05:302008-12-24T00:20:00.000+05:30World Bank confirmed yesterday that Satyam has bee...World Bank confirmed yesterday that Satyam has been barred from doing any work for 8 years.<BR/><BR/>Read details on fox news.<BR/><BR/>This fraud was planned and executed by Ram Mynampati and his direct report Raj Asava. Senior executives like T. Hari, Shailesh and Prabhat were active and willing participants.<BR/><BR/>Some of these corrupt executives who benefited handsomely have now left Satyam. Why blame Raju and his family alone for the crimes of these corrupt executives? Name these people and shame them.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-30157579547905324102008-12-22T14:50:00.000+05:302008-12-22T14:50:00.000+05:30while the decison of Satyam's mangement was ha...while the decison of Satyam's mangement was hasty , let us not be hasty . Changing the mangement of an IT company is not that simple. we should ensure there are better safegards in the goverenance to avoid such unilateral decisions. Let us not give this company into foreign hands.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-65762778261028022592008-12-22T08:30:00.000+05:302008-12-22T08:30:00.000+05:30"share prices of both companies were in motion bas..."share prices of both companies were in motion based on anticipation of these events prior to this"<BR/><BR/>Ajay, you went over this bit of your post unremarked. Why should there be "anticipation" of an event like this? Who were the people placing large blocks of trades in the run up to the announcement. Perhaps the answer to this seemingly irrational proposal, lies in what went down prior to the announcement.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-40787470038904531562008-12-21T20:13:00.000+05:302008-12-21T20:13:00.000+05:30Of the two Maytas companies, one had a son of Raju...Of the two Maytas companies, one had a son of Raju (the founder of Satyam) as vice chairman, and the other, newer real estate company had another son as CEO. Raju did not explain the transaction either before or after he decided not to take over the two companies; nor have I seen any justification of the prices proposed to be paid. I do not know whether the proposal to buy the two companies was good or bad; Raju never disclosed the information. The lesson to me is that CEOs of public companies have to communicate with shareholders.<BR/>The suddenness with which Raju gave up on the idea suggests to me that the Upaid suit - in a Texas court - is financially significant.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-73625116381712935932008-12-21T15:21:00.000+05:302008-12-21T15:21:00.000+05:30Anonymous: Satyam has done well over the past 10 y...Anonymous: <BR/><BR/>Satyam has done well over the past 10 years and there is no doubt about that. But, that, in itself cannot be an excuse (or a reward, if the promoters were thinking on those lines) to abuse shareholders money in the way Ramalinga Raju and Co. proposed to do.Ravi Purohithttps://www.blogger.com/profile/17616076999283569192noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-56939220549334642402008-12-21T15:16:00.000+05:302008-12-21T15:16:00.000+05:30Sir, one angle which needs to be considered is Sat...Sir, one angle which needs to be considered is Satyam's legal tussle with Upaid (in UK). A billion dollar claim from Upaid and a billion dollar in Cash / Bank balance was not a good idea ???<BR/><BR/>And the best way to deplete the reserves but not partuing with them is what we have seen Satyam doing.<BR/><BR/>Infact this is serious trechery, because at below 9% promoter holding the non-promoters were to be cheated by buting out the Maytas companies, where the Raju family had substantial holding.<BR/><BR/>Investor activism is the need of the hour, and a quick reaction is of utmost necessity.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-78875751481529751892008-12-21T14:45:00.000+05:302008-12-21T14:45:00.000+05:30Satyam's performance over the last decades cannot ...Satyam's performance over the last decades cannot be questioned. it has proved itself consistently time and over again. <BR/>we should not jump to conclusion without understanding the merits of this acquisition story. Media should play a constructive role rather than be a party to the episode.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-50862368863607247312008-12-21T14:08:00.000+05:302008-12-21T14:08:00.000+05:30Sure, the CEO can be sacked - the family may not h...Sure, the CEO can be sacked - the family may not have the shareholding - but who takes over? And have the independent directors covered themselves in glory? Can they be trusted to appoint a new manager? At least, the deal was cancelled because the family had a reasonable stake. Would a professional have conceded "defeat" as easily or would ego have got in the way. My own take on some of the issues is at http://blunderbussinmumbai.blogspot.com/2008/12/satyams-shenanigans-and-related-issues.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-24598103380830860382008-12-21T13:30:00.000+05:302008-12-21T13:30:00.000+05:30The major shareholders table mentioned above is he...The major shareholders table mentioned above is <A HREF="http://www.business-beacon.com/kommon/bin/sr.php?kall=wcoshv&repnum=654&cocode=214297" REL="nofollow">here</A>.Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-58873216198962903802008-12-21T13:17:00.000+05:302008-12-21T13:17:00.000+05:30Yes, I agree. Promoter's in this case can simply b...Yes, I agree. Promoter's in this case can simply be asked to resign. And not just the Promoters, but the entire Board that's been paid as if they are running the company's day-to-day operations. Rs.1.5 crore in cash and another crore plus in stock for Independent Directors, phew!!<BR/><BR/>http://blogs.livemint.com/blogs/initial_private_opinion/archive/2008/12/17/satyam-name-and-reputation-are-upside-down-2.aspxRavi Purohithttps://www.blogger.com/profile/17616076999283569192noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-82284437196580394792008-12-21T13:04:00.000+05:302008-12-21T13:04:00.000+05:30For the managers to get sacked they don't have...For the managers to get sacked they don't have to get bought out! They<BR/>only have 8.6%. They serve at the pleasure of the shareholders. Look<BR/>carefully at the shareholders - if 10 to 20 of them get together, it's<BR/>a done deal. <BR/><BR/>See:<BR/><BR/>http://www.business-beacon.com/kommon/bin/sr.php?kall=wcoshv&repnum=654&cocode=214297Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-64348121544374760832008-12-21T13:03:00.000+05:302008-12-21T13:03:00.000+05:30Hi Sir,I think group of large shareholders like Ab...Hi Sir,<BR/><BR/>I think group of large shareholders like Aberdeen Asset Management, Fidelity, Lazard et al may / should get together to buyout Satyam's promoters stake and then approach Infosys/Wipro to take over Satyam.<BR/><BR/>Ousting Ramalinga Raju and team won't be difficult, the question really is, do we have shareholder groups like those of Eddie Lampert, Boone Pickens, and the likes. I think we might (or I am hoping) see that happening this<BR/>time around.<BR/><BR/>Ramalinga Raju's days at Satyam are limited, I think.Ravi Purohithttps://www.blogger.com/profile/17616076999283569192noreply@blogger.com