First of all, the decision was not announced taking into confidence all the stakeholders of the company. Secondly, the twin Maytas companies are being the companies run by the family members of Ramalinga Raju only and it was told that his two sons are major interested party in the twin companies. Thirdly, the deal would have made the cash reach company Satyam into a debt ridden company as it’s entire holding of $1.3 billion cash would have gone to Maytas Properties (where promoters were 100 per cent holding) and in Maytas Infrastructures. Fourthly, Ramalinga Raju was holding only 8.5 per cent stake of Satyam computer so how can he take decisions of transferring its cash to a company owned by his son without asking the rest of the 91.5 per cent stake holders? Fifthly, in the name of diversification from software to entirely new area of reality why has a relatively new company Maytas been chosen when several other big players are still there? Sixthly, is it really time to go for shopping in a sector where the economic slowdown is at its severest form?
If you leave the bad performance due to recession, since every industry is suffering out of which, the failed deal of Satyam-Maytas is the story of how anybody having a stake of just over 8.5 per cent stake can ignore the interest of fragmented share holders who account for 91.5 per cent.
So where is the fairness when you are not wanting to bring the resolution in the EGM as you know that it can not get passed in the EGM and announcing the decision almost unilaterally on the ground that you are a majority (8.5 per cent) stake holder?
So where is the transparency when your action suggests that you are trying to make a company sitting on cash into a debt ridden company ignoring the interest of rest of stakeholders?
And where is accountability when you are not scared of shareholder’s and dare to overlook the interest of minority stake holders who actually are majority shareholders?
In short, the entire episode of attempt to purchase of Maytas by Satyam was nothing but making mockery of the concept of corporate governance in India, the very definition of which i.e. fairness, transparency and accountability has failed here.
Already shaken, Indian software industry is working under tremendous pressure owing to worldwide recession and such an act of a leading software company is going to give a signal to the market that for these ’soft’ companies future is not as rosy as of their golden age of previous few years, at least not in near future. Meanwhile, shareholders of Satyam are in confused state about the future of the company, whether company will remain a software company or whether it will migrate into such a domain where software business will not be major earning player for Satyam? Almost 30 per cent loss of share price in India and above 50 per cent abroad (ADR) on Wednesday confirms the confused status of investors of Satyam. By the way, Satyam and Maytas are alter-egos only if you read Satyam from right to left you will find Maytas only. Isn’t it?
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