Satyam Fiasco

Satyam Fiasco:

1) SEBI allowed questioning Raju brothers: The Supreme Court on Tuesday allowed the Securities and Exchange Board of India (SEBI) to interrogate in prison B. Ramalinga Raju and B. Rama Raju, the former chairman and the managing director respectively of Satyam Computer Services Ltd., in connection with the financial scam involving the company.

2) Satyam board to discuss suitors today: The Government-appointed board of directors of the embattled Satyam Computer Services will be meeting here on Wednesday for the sixth time since its constitution. Satyam insiders indicated that the board might not appoint any Chief Executive Officer or Chief Financial Officer, especially in the wake of relaxations being considered by the Securities and Exchange Board of India (SEBI) for an open offer so that any company could buy a controlling stake. Sources said that even if the CEO and CFO were appointed, the arrangement would be purely ad hoc, as the new management might put in place these things finally.

3) Satyam board to discuss suitors today: The Government-appointed board of directors of the embattled Satyam Computer Services will be meeting here on Wednesday for the sixth time since its constitution. Satyam insiders indicated that the board might not appoint any Chief Executive Officer or Chief Financial Officer, especially in the wake of relaxations being considered by the Securities and Exchange Board of India (SEBI) for an open offer so that any company could buy a controlling stake. Sources said that even if the CEO and CFO were appointed, the arrangement would be purely ad hoc, as the new management might put in place these things finally. The regulator’s relaxations for an open offer assumed significance in the light of L&T increasing its stake from four per cent to little over 12 per cent.

4) Satyam staff to receive Feb salary on time: Employees of Satyam Computer in India will be paid their February salaries by the month-end, while its employees overseas will be paid in two tranches beginning mid-February, a top source said. "February salaries of Satyam employees abroad would be paid in two tranches--the first by February 15 and the second by this month-end, while India salaries would be paid by the end of this month," the source said in Mumbai on Tuesday. Around Rs 500-600 crore is needed per month to meet salary payment requirements, the source added. When asked how the scam-hit company would meet this and other financial requirements, the source said that Satyam's financial position was not very bad, as it had around Rs 1,800 crore as receivables.
Satyam to vet buyout plan: The two-day Satyam board meeting beginning on Wednesday will consider six-seven proposals for buyout of the beleaguered Information Technology major and discuss the Rs 600-700 crore short-term funding requirements to be provided by three public sector banks. “We have received six-seven EoIs from potential buyers that will be examined during the Wednesday board meeting. The priorities of the board, while considering these proposals, will be to guard the larger interests of Satyam, besides getting a good pricing,” said a top source