Wednesday, December 24, 2008

satyam (meaning truth) perhaps did the most un-satyam, or shall we say in reverse maytas, thing.

the management headed by the father raju proposed that satyam acquire 2 companies that is in the real estate sector and run by father's own 2 america educated son's using the cash of satyam and hence india's fourth largest IT company can also become perhaps india's second largest real estate company. is like google acquiring toll brothers. it is like blue cross acquiring trump holding. well, it is like the craziest thing in the world wherein a big IT company is buying a 'big' real estate comapny.

and it get more crazier when you note that the raju family perhaps have 8% of the satyam stake and the investors hold close to 70% and with the minuscule control of the company, the father raju proposed to use 1.3 billion dollars of cash to give it to his son's and acquire 2 'great' real estate companies thereby wiping out cash out of satyam and totally branching into unrelated area and that too in a world economy that is bordering on disaster and where cash is king!!!!! and the great board of directors including vinodh dham, the 'father of pentium' reportedly signed off the 'great' deal!!!

we all know india's corporate care BS when it comes to environment, when it comes to safe working conditions, when it comes to honesty, etc. but satyam-maytas fiasco tells something more. something more is really rotten amongst the families that run india's biggest companies as family holding in spite of being very minority shareholders of the company!!!


Post a Comment

Subscribe to Post Comments [Atom]

<< Home