The only thing Satyam’s buyer will be knowing is that they will be buying Satyam – the company. Other than that they just have to rely on public information. It is like me sitting in front of my computer and doing some research (read google) and picking up shares of Satyam at 20 rupees per share.
I really don’t know anything about the company or its performance, its employee count, its new CEO or any other information. Simply put this is speculation at the highest level.
It is more of a choice rather than a decision. The reason given by the board is that the numbers will not be ready for the bidding time. This might actually be good for Satyam. But what about the buyers?
BK Modi’s Spice Group has expressed its interest in buying stake in Satyam. It has been advocating the e-Auction method. L&T strongly opposed it. Looks like Spice Group might have its way. Given L&T’s strategic stake, it might want the process to go in a non-transparent fashion.
The 12% stake which L&T bought is in the open market and the money did not go to the company. Spice Group just want the money it has to go into the company. Spice Group has a point though. It has set aside 400 crores and can spend upto 2000 crores on Satyam.
As an individual investor I might want to make a quick buck or two. I really don’t care about the financial’s. I go by the word on the street. I buy shares on impulse. But should it be the same thing for large corporations?
Buying Satyam will be a perfect arranged marriage with the blessings of the parents (board + government). The bride is Satyam who obviously do not have a choice here. The groom(s) are waiting for this swayamvaram to begin. The task here is – just bid – as high as you can.
but my question is, who will invest bravely in a company like satyam who dont have even a pe ratio or a book value officially not published yet???????????????