Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Satyam drops Maytas deal on investors’ resistance
BackBack

Satyam drops Maytas deal on investors’ resistance

Satyam drops Maytas deal on investors’ resistance

Premium


New Delhi: Hit by the adverse market reaction, homegrown Satyam Computers on Wednesday called off its proposed $1.6-billion acquisition of two companies promoted by the IT major Chief Ramalinga Raju’s son.

Announcing the decision to call off the acquisition of Maytas Properties and Maytas Infrastructure “in light of the setback received from the investors community", Raju said: “We have been surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition."

“However, in deference to the views expressed by many investors, we have decided to call off these acquisitions," he said.

Also Read: Transcript of Satyam acquisition conference call (PDF)

The reversal comes within a day of the Satyam board approving the decision to acquire Maytas Properties for $1.3 billion and a majority 51% stake in Maytas Infrastructure for $0.3 billion.

Shortly after the announcement was made on Tuesday evening, the US-listed company had plummeted more than 55% on the American bourses reflecting rejection of the deal by the shareholders.

Even during the investors conference held after the board’s approval for acquisition, Raju faced tough questions from Institutional Investors in Satyam such as Reliance Mutual Fund, SBI Mutual Fund, Templeton Mutual Fund and CLSA, with some of them even threatening to oppose the deal.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 17 Dec 2008, 08:05 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie