The Satyam Computer Services Ltd saga has attracted comment that has chiefly focused on three angles:
- the ethical conduct of founder B. Ramalinga Raju;
- the negligence of the auditors, Price Waterhouse; and
- the role of independent directors.
Satyam Maytas Deal
The story wasn't about Satyam trying to rescue Maytas, but Maytas trying to save Satyam.
How would the Maytas acquisition have helped?
- Satyam would have paid at least Rs 5000 crore to acquire the two companies from the promoters (the Raju family).
- The money was non-existent. So, it would have pretended to pay the money and ended up with the assets (the two Maytas companies).
- The promoters may have never got paid but that would have served them right.And everyone would have been alright
- Satyam would have had assets, real assets on its books instead of non-existent cash;
- the Raju family would have continued to manage Satyam, but would have been poorer by quite a bit; and investors would have still had their money invested in a halfway decent company.
That hasn't happened.
I was talkin on soft corner for RAJU, i still have the same for him for the following reasons:
- Why shareholders pretend to be owners of company at the time of profit division only?
- Why they behave as creditors when company is into crisis?
- Why would a person who had made this mighty empire eat up money when the company is already into profit making?
- Why do we forget tht SATYAM is a part of big 4 IT giants who are representing INDIA?
- Why do we always remember our rights as Shareholders , not the duties as legal owners of company?
I am an investor in SATYAM, bt that makes me an owner of company too, i will stand by the company as it is a legal entity…
Ankit
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