Satyam buys Mytas

[Prashanth]

Satyam Computers inspite being among the Top IT companies has never commanded the valuation that its peers like TCS, Wipro & HCL command. This is majorly attributed to lower levels of lower margins, lack of transparency, lower level of corporate gove... More (http://www.desitradermall.com/blog/2008/12/16/satyam-buys-mytas/)

[aasansenthil]

if the management thinks satyam has good future in this crisis they could have gone forward and buy back their own shares

they could reduce the shares outsatanding and increase the shareholding value.;

:):):):) think
they are fooling the satyam shareholders,or the IT sectors may be in real trouble like the never before.

[Ajay.Joglekar]

They say that as the bear market starts to enter the middle stages all the scams and frauds start coming to light. Madoff was one international case and seems like Satyam is our own corporate desi case. I wonder what the shareholders will do. Did they get to vote on this? What kind of decision is this? Diversification???? I dont think so. I am in the s/w industry and I think anyone who is in the industry knnows that this is a core engineering industry and so it will survive the downturn. Maybe there will be lots of layoffs etc but finally it will survive and a big company like Satyam surely will. So what is the deal with buying this company. It almost seems like Satyam bought the real estate thing at the peak in the Indian market to bailout the falling net asset values for the owners. This really sucks

[Profit Maker]

Fianly Satyam in a Down Way Like Wipro face since last few years.
After all Maytas is Reverse Name Of Satyam.

[Prashanth]

....I wonder what the shareholders will do. Did they get to vote on this? What kind of decision is this? <Clip>It almost seems like Satyam bought the real estate thing at the peak in the Indian market to bailout the falling net asset values for the owners. This really sucks

Ajay,

Unfortunately, it seems it does not require Share holder Approval. But there is a small silver lining. Promoter holds a measly 8% stake in the Company and are trying to just zap the company of all the cash it has to their personal accounts. Unfortunately for them, FII's and DII's together hold 61.57% and if they decide to fight it out, they can remove the board by first staying the continuation of the proposal and then unseating the current board.

We have to wait and watch as to what happens, but this is a clear cut case of the Looting not seen for quite a long time on such a grand scale.