The Hindu : Business : Satyam to focus on core activities

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Wednesday, Dec 31, 2008
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Satyam to focus on core activities

Special Correspondent

Raju keen on salvaging company’s reputation
‘Company continues to enjoy customer confidence’

HYDERABAD: The embattled Satyam Computer Services received a breather on Tuesday in the market with close to six crore shares trading on the bourses — the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The scrip closed at Rs. 160.40, an 8.20 per cent surge, on the BSE and Rs. 162 on the NSE with the upside touching 9.39 per cent.

The responses of the representative of Aberdeen Asset Management Company (AMC), which has 5.12 per cent stake in Satyam Computer, in a TV interview actually provided the much-needed boost to the company’s sagging morale.

Chairman B. Ramalinga Raju was keen on salvaging the reputation of the company and the promoters group, observed Adrian Lim of Aberdeen AMC. In fact, Mr. Lim went on to say that Mr. Raju was well placed “at least for a short-term” to lead the recovery and so his company was not gunning for a management change.

He said that the asset management company had spoken to Mr. Raju and that he knew Satyam Computer very well. Of course, the company was open to selling some of its shares, but only for a better price than the existing one. Mr. Lim did not rule out the possibility of a change in leadership in the long-term. Against this background, Mr. Raju appealed to his staff in an email: “I ask for your continued faith in Satyam and for your steadfast focus on your customers, especially in the face of wild speculation and unchecked rumours.” He asserted that “Satyam did not — and does not now — intend to retreat from IT and BPO services in any way, and going forward, Satyam will focus exclusively on these markets.”

Mr. Raju felt that several questions raised in the last two weeks distilled into two basic issues: “the viability of our business strategy to diversify; and the effectiveness of our corporate governance.”

He informed the employees that the company continued to enjoy customer confidence.

Prasad not to quit

Former Union Cabinet Secretary and independent Director on the board of Satyam Computer Services T. R. Prasad doesn’t want to quit, at least, for now, while “teaching commitments” constrained Harvard Professor Krishna G. Palepu to give up his assignment as independent director.

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