M&A: Time for European buyout of Satyam Computers
By Tarry Singh at 21 January, 2009, 10:15 am
The DealBook of NYT are suggesting or even expecting some stakeholders to grab Satyam Computers, but I see this as a great opportunity for any European firm, possible a SI vendor but it could also be any other vendor in HW/SW business, to go after this firm. The timing may not sound right but it can suddenly give those firms a strong foothold in the subcontinent with those large number of employees [one friend of mine was telling me that you must do a head-count of those figures in flesh and blood as 6000 employees were fictitious for several years].
Still I believe that this is the time to do the “wrapper” on Satyam Computers, give it another name and trim your fat [both ways -- you own as well as the Satyam staff] and get going! Great opportunity.
Satyam Computer Services’s board is looking to hire as many as three investment banks to explore the possibility of selling the scandal-rocked Indian outsourcer, The Economic Times reported.
Goldman Sachs, JPMorgan Chase and Deutsche Bank are under consideration and a final decision is likely this week, the newspaper said, citing unnamed people familiar with the development.
A government-appointed six-member board, which met in the southern city of Hyderabad on Saturday, has decided to talk directly to Satyam’s big overseas clients to calm their concerns in the wake of the country’s worst corporate scandal, according to the report.
Satyam, India’s No. 4 software services exporter, has been battling for survival since Ramalinga Raju resigned as chairman earlier this month, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist.
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