Satyam is finding some good news among some worse news. Many clients have given the notices, terminated contracts and suspended it from their vendor list. But the investors are least bothered about the whole bad news. Satyam rose on the Bourses when Sensex and Nifty were down. Strange but true.
Satyam’s stock went up from 29 rupees to 39 rupees on the Indian Bourses today. There are no real patterns which came out of the rise until late in the evening.
The rise can be pointed to 4 main events :
- iGate has expressed its interest to buy the whole of Satyam if it is really on the block. They wouldn’t buy it if the liabilities are more than $12.5 bn. They have $65 mn in cash and is looking up for some Private Equity help.
- L&T has increased its stake in Satyam from 4% to 12%. It is the largest shareholder in the company and LIC comes as the closest second. A L&T buyout might be on the cards but L&T was trying to average out their overall price. It might increase its stake to 14.9%.
- Satyam’s new board met and made some declarations. Immovable properties like the office space and the buildings are free from any encumbrances. Thank You, Mr. Raju. The account receivables of the company are robust.
- Board has finalized a list of 3 candidates for the CEO and CFO post.
Speculations are on the rise about who could be the new CEO of Satyam. Vivek Paul, Venkatesh Roddam , Jerry Rao, Raman Roy, Phaneesh Murthy and Basab Pradhan.
The most likely candidate would be Venkatesh Roddam who was the former CEO of Satyam’s BPO Nipuna. Though Vivek Paul is a high profile candidate for the post he was not keen to come back to India – ‘according to my highly placed sources on the internet’.
Comments
Well it was a bit strange no doubt after the announcement that Satyam actually has 10,000 employess less and their accounts were used to divert money for other purposes. The feel good factor after all this is that the new board is very strong and the news of new CEO and CFO are about to come. We can still see a rally in coming days if some good news come in.
‘according to my highly placed sources on the internet’
Sounding like the media channels :-O
@Sridhar : I know, I couldn’t help it. Wherever I checked they had some highly placed sources. My highly or only placed source is the Internet.
@Shyam : I forgot to mention the employee inflation. That is one more good news. The liabilities are coming down and there is a fresh interest in the circles.
@Sriram
Well it seems the news of the inflated employees was again a rumor as per what the new board says..check the opening lines of
http://www.livemint.com/2009/01/23175110/Satyam-shortlists-CEO-aspirant.html?h=A1
anyways the total truth will only come after a through investigation. But as you say the “The liabilities are coming down ” is a plus point. Let’s see.