Finally the wait has ended….and the outcome has been good; in fact very very good!
Fraud hit Satyam Computer Services, India’s 4th largest IT company has been bought by Tech Mahindra, India’s 6th largest IT company.
The government appointed Satyam board did a good job in seeing through the Satyam sale…and that too very quickly (by Indian standards!)
But what struck me on hearing the news (and especially the final price of Rs. 58 per share) was:
Right after the Satyam Scam broke out, Tech Mahindra had actually approached Satyam for merger (http://www.forbes.com/feeds/afx/2009/01/06/afx5882450.html)
What is interesting is, Satyam’s stock price was Rs. 174 at that time.
And within less than 3 months – Tech mahindra snapped Satyam for Rs. 58 per share i.e. discount of 66%
Governement initiated 2 parallel processes after Satyam scam happened.
One was to bring Satyam on track – and protect the interest of stakeholders, employees and customers – which the government appointed Satyam board has achieved today!
(Indian business fraternity is all praise for this – http://www.aol.in/news-story/India-Inc-hails-quick-effective-decision-on-Satyam/2009041306589012000003)
The other process was legal – to book Raju and others under various charges and bring them to justice.
Considering the lapses in legal system in India and political influence of Raju, I doubt whether the legal case will ever end.
Probably, Raju would spend years and years in judicial/police custody, just like Praveen Mahajan who is accused of killing his brother and politician Pramod mahajan, without actually facing conviction.