Satyam scrip falls again, regulator to probe acquisition bidDecember 19th, 2008 - 5:53 pm ICT by IANS
Mumbai, Dec 19 (IANS) Satyam Computers, which is planning to buy back shares to regain investor confidence, saw its scrip slide again in Friday morning trade, while the market regulator said the IT major’s unpopular and thwarted bid to acquire two promoter companies would be examined.“We do not want to react quickly to the incident (the acquisition bid that triggered investor outrage), but we will study issues involved and then take a decision,” Securities and Exchange Board of India (SEBI) chairman C.B. Bhave told reporters here.
The Satyam scrip fell about 3 percent since its previous close and was trading around Rs.166, while Maytas Infra - one of the companies Satyam was planning to acquire - saw the free fall of its share value continuing, the scrip losing another 20 percent since Thursday’s close.
The Maytas stock was trading at around Rs.248 during morning trade Friday, down Rs.62.10 since its previous close of Rs.310.65.
Satyam Thursday said its board would meet Dec 29 to buy back shares, a declaration that is being widely perceived as a move to regain investor confidence that was eroded after the cash-rich company said it would acquire two promoter firms at $1.6 billion despite widespread liquidity squeeze.
Both firms are owned by the sons of Satyam’s chief promoter B. Ramalinga Raju.