Wednesday, December 17, 2008

What were these guys thinking?

So Satyam computers decides to spend 1.3bn USD of its cash and take on 300mn USD in debt to buy Maytas Infrastructure and Maytas properties - two companies owned by its founders. The founders btw own 9% of Satyam ONLY. The resolution is passed unanimously by the board and then communicated to the stock exchanges. Shareholders go ballistic and the stock tanks by 54% - The company has to call of the deal fearing god knows how many lawsuits.

What surprises me is the names on the Satyam board

The links point to their profiles. What were these people thinking? I am sure that they have decades of experience and know their respobsibilities. Or is sitting on a board just about making a quick buck and getting the company to pay for your stay in expensive hotels? Shameful to say the least. I wouldn't be surprised if shareholders decide to replace a significant number of board members and maybe the three executive directors too. They anyhow seem to be more interested in constructing bridges and apartments in India instead of spending their time and energy delivering software to customers in the U.S of A.

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