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Showing posts from January 14, 2009

Satyam Truth Untruth Limited (Continued)

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…