Satyam fails to ignite interest in 'innovation' report
BS Reporter / New Delhi Jan 05, 2009, 18:09 IST
In a seemingly last-ditch effort to save face before its board meeting on January 10, Satyam Computer Services today released a Forrester Research report on its innovation strategy which calls for other organisations to “emulate Satyam by unleashing and harnessing their firms’ grassroots creative energy”.
The report, “Satyam Ignites Innovation from the Bottom Up” is the ninth such paper in the research firm’s series entitled “India: The Innovation Giant (Re) Awakens.” However, it is dated December 18, 2008. A Forrester spokesperson further clarified that the report "was written 4-6 weeks before its published date".
The irony was not lost on investors since the very same research firm Forrester, in a December 30 report on Satyam, had categorically stated that "...Satyam’s management team made a major miscalculation that will likely haunt the company for years..." Satyam had announced, and then quickly canceled after a shareholder revolt, plans to diversify its business and acquire 100 per cent and 51 per cent stakes in real estate and physical infrastructure companies Maytas Properties and Maytas Infra, respectively, for $1.6 billion.
"...It’s looking more and more likely that after the special board of directors meeting on January 10, 2009 (postponed from December 29), there will be management and governance changes and even potentially the outright sale of the company. Sourcing and vendor management executives will need to review their dependence on Satyam and ensure that they have strong contingency plans and change of ownership clauses in the event that Satyam is acquired or the fallout from this serious misstep affects the firm’s ability to compete long term...," indicates the (December 30) Forrester report.
The board meeting's scope has now been expanded beyond buyback to include measures to strengthen Satyam’s governance structure, including increasing the size and altering the composition of the board.
"We believe that the company’s announcement earlier to consider a stock buyback was a knee jerk reaction to the falling stock price and now the company is looking to explore all possible steps required to restore the investor’s faith. Given the likelihood of a further reduction in the promoter stake, we believe that the possibility of a takeover attempt by either a strategic or a financial investor might increase...," Emkay analysts stated in a recent report.
Satyam's stock fell 6 per cent at Rs 166.90 on the Bombay Stock Exchange today.
satyam have excellent bench mark in IT sector,in india
like one of best and deep root of a tree which is giving fruits to the lot of people.by one decision we are not expecting the management fault , because by there decisions only the organisation enjoying current status . i am hoping the clouds on satyam moves fast and get shine more than now in the world IT
industry under the control of founded & current managemant .
Just shows you how shallow the research by likes of Forrester is. Analyst are expected to know things in advance.Controversy happened around 15th dec at Satyam and Forrester did not think that it was a Serious corporate governance issue on 18th ? suddenly they see the wind shifting and react to it.When this resolves in a month they will come out with a report saying everything is fine. So much for these superficial analysts.Serious investor ignore these analyst as they are a bunch of jokers.
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