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Market Eye
| Satyam-Maytas deal called off but hostile bid threat looms | 18/12/2008 10:34:39 | HYDERABAD/MUMBAI: Rattled by the shareholder backlash and a brutal stock market,
Satyam Computer Services is bracing itself for any
IT megavendors
eventuality, including a hostile
takeover bid or a forced change of management. It is looking at options like a share buyback and a special dividend payout to restore investor confidence in the near term.
The company may also continue to pursue other acquisitions, CFO V Srinivas told ET. The company’s ADR was up 51% at $8.62 in initial Wednesday trades, an indication that the company’s contrition had at least some impact on irate investors.
Under relentless assault for poor corporate governance, Satyam announced on Wednesday morning, well before the market opened, that it was calling off the controversial $1.6-billion deal to buy two firms — Maytas Properties and Maytas Infrastructure — founded by the family of its promoter and chairman B Ramalinga Raju. | Market
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