India Inc hails quick, effective decision on SatyamApril 13th, 2009 - 5:21 pm ICT by IANS
New Dellhi, April 13 (IANS) India Inc Monday was full of praise for the manner and speed with which the reconstituted board of Satyam Computer Services found a strategic investor for the beleaguered IT bellwether, and said this would send a strong signal globally that the country can respond well and fast to financial crises.
“This is probably one of the fastest cases where there has been a change in ownership through a structured process,” said Harsh Pati Singhania, president, Federation of Indian Chambers of Commerce and industry (FICCI).
“The smooth completion of the bidding process for Satyam demonstrates that India has an adequate legal and institutional mechanism for handling and resolving a major corporate crisis,” Singhania said.
The comments came after Tech Mahindra was declared winner of the global auction to take over Satyam, and agreed to pick up a strategic stake of 31 percent in the company for Rs.1,756 crore ($351 million) at Rs.58 per share. Tech Mahindra will also make an open offer for another 20 percent stake in the scam-hit company.
“With this, Satyam should be able to make a new beginning and redeem its reputation as a supplier of high quality software and services internationally besides boosting confidence among employees,” the FICCI president said.
“The deft handling of the Satyam issue would send a very positive signal to the global community that India can respond rapidly to crisis situations. This would also rebuild whatever credibility loss there may have been for corporate India following the breakout of the Satyam fiasco,” said Singhania.
“The widespread interest in Satyam demonstrates that the company as such was sound and could be turned around profitably. The bidding also showed that Indian IT industry was inherently strong and a reliable supplier of quality products and services.”
The Associated Chamber of Commerce and Industry of India (Assocham), too, lauded the bidding process, saying: “It’s a good news not only for Satyam and its employees but the entire market as lot of speculation was fuelled about its possible takeover in the last three months.”
According to it, “Satyam will move for stabilisation, its market value will get stabilised, benefiting both its clients, employees and all stakeholders.”
Assocham also said it “appreciated the Satyam board and government for an excellent job to ensure transparency in the bidding process”.
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