The Hindu Business Line : We need your support for task ahead, Satyam chief tells staff

Hyderabad, Dec. 30 The scrip and spirit of Satyam Computer Services management moved up today on positive news emerging from key FIIs and independent directors on the board.

In a bid to press home the advantage, the company Founder Chairman, Mr B. Ramalinga Raju, dashed off a letter to his staff, whose morale was showing signs of sagging in recent days, following the aborted Satyam-Maytas deal.

Aberdeen Asset Management Company, a key investor in the company with about five per cent holding in the company virtually affirmed its faith in Mr Raju’s ability to “lead a recovery”.

Reacting positively to this statement in the morning, the share price of the company went up 8.33 per cent on the BSE to Rs 160.60 on Tuesday. It opened at Rs 150.05. The ADR, which opened on $7.77, went up to $8.41 on Monday. The positive sentiment is also attributed to purchase of shares by promoters.

Meanwhile, Mr T.R. Prasad, an independent director and former Union Cabinet Secretary, too threw his weight behind the management and said that he would not like to desert a ship that was in trouble.

The Aberdeen stand brought cheer to the Satyam management. “It is a positive step. Good to listen to them talking openly about the development and affirming faith in us,” a Satyam executive said.

During the day, Mr Raju held discussions with key investors and top executives of the company, deliberating on the recast of the board ahead of the January 10 meet.

“He is pulling out all the stops to draft a plan that would bring back the image of Satyam,” the executive said.

Raju’s letter

In his second letter in 12 days, Mr Raju sought to assure the 53,000 employees that the leadership would bring the company back on track soon and that the customers reposed faith.

“We need your support in this task. We have been in contact with our investors and have taken steps to regain their confidence,” he said.

“We do not intend to retreat from IT and BPO services in any way,” he said.

RoC deadline not met

Satyam, which was to submit the minutes of the December 16 board meeting on Tuesday, has asked the Registrar of Companies (RoC) to extend the deadline till January 10.

“We need time because the minutes have to be approved by the board. With the board meeting on January 10, we cannot get it ratified before that. So we have asked for extra time,” a top Satyam executive said.

The RoC, under the Ministry of Company Affairs, has confirmed the receipt of the Satyam letter. It has also begun work on the enquiry with “certain documents” the company submitted.