Satyam hires DSP Merrill Lynch to mollify shareholder outcry

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New Delh, Hyderabad: Under pressure from the investors, Satyam Computer Services, India’s fourth largest software exporter, has engaged the services of DSP Merrill Lynch to look at the available options to enhance shareholders’ value. The company, which is under fire ever since its aborted bid to acquire two promoter-related firms for $1.6 billion, could also see a change in the composition of its board when it meets on January 10 as against the earlier date of December 29.

The company on late Saturday evening postponed its December 29 meeting and also broadened the agenda, which earlier was only to discuss the buyback option.

There’s been intense speculation that the company’s chairman B Ramalinga Raju may step down from the board. However, another independent director BS Raju came out in support of the present regime. “I am not looking for a change in management,” he told a news agency.

“Satyam has decided to broaden the scope of its deliberations beyond a possible buyback of its stock. Satyam's board of directors recognises the serious nature of certain questions raised by the events of the last two weeks,” said B Ramalinga Raju, chairman and founder of Satyam.

Soon after the company shelved the proposed acquisition of Maytas Infrastructure and Maytas Properties, it had announced its intention of a share buy-back to mitigate investor sentiments. However, according to industry analysts, the company has several options before it to pass on the cash to its balance sheet that includes a buyback and special dividend. “Satyam takes the interests of its stakeholders very seriously and we will take whatever steps are necessary to reinforce their trust and confidence in the company,” Raju said.