Satyam: Undermining confidence in India Inc.

Wednesday, December 17, 2008

Two stories in a couple of days..both involving Raju's and both involving Maytas Infra...not a good mix for investor confidence.

Satyam shares dumped

Shares of India’s fourth largest information technology company, plunged on Wednesday as angry investors dumped the stock over its aborted attempt to buy companies controlled by the chairman’s family.  Mr Raju’s family hold stakes of 36.6 per cent in Maytas Infra and 35 per cent in Maytas Properties.

Satyam, which is only 8.6 per cent owned by Mr Raju’s family, elected to buy out Maytas Properties and Maytas Infra without seeking shareholder approval.
In a global environment, where fraud has been perpetrated for years, the deal above might have been done without much notice.  How the times have changed...-Lee

And what is the link of the Satyam buy-out proposal and the story below...something smells ...

Nagarjuna Raju sent to 14 days judicial custody 
Hyderabad: The chairman of the Nagarjuna group, K.S. Raju, and chief executive officer of Maytas Infra Ltd, P.K. Madhav, were on Tuesday sent to 14 days of judicial custody by a city magistrate at Nampally court here.
India needs to deal with this firmly and with transparency...frauds are being unveiled globally...we need foreign capital...-Lee

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