Satyam defers Monday board meeting until 10 January

Satyam defers Monday board meeting until 10 January

Bangalore: Satyam Computer Services Ltd said it has deferred a board meeting to discuss a buyback of shares to 10 January that would also have on its agenda reducing the stake of the firm’s promoters led by Chairman Ramalinga Raju.

The board meet on 29 December was called after Satyam’s aborted plan to buy two infrastructure firms for $1.6 billion, in which Raju’s family were beneficiaries, due to massive investor unrest.

The short-lived plan to buy Maytas Infra Ltd and Maytas Properties Ltd, had raised issues of corporate governance, especially in terms of how independent directors agreed to a valuation. Mangalam Srinivasan, an independent board member, resigned on Thursday owning moral responsibility for not expressing dissent in the 18 December decision.

Satyam has appointed DSP Merrill Lynch to conduct a review of the firm’s strategic options, besides changing the composition of the board, which is under investor scrutiny, it said in a statement.

The board will also decide on diluting the stake of the promoters, led by Raju, who hold 8.6% of the shares in the firm.

“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 in a statement.