2 more directors quit Satyam
Bangalore: Shares in Satyam Computer Services rose over 9 per cent on Monday after the outsourcer said it would consider more options to improve shareholder value and business practices, including strengthening corporate governance.
The embattled company, hit by accusations of a lack of transparency, said at the weekend that it had hired DSP Merrill Lynch to review ways to enhance shareholder value, but did not give further details. New York-listed Satyam, India's No. 4 software services exporter, has seen its shares plummet by about 40 per cent since a botched attempt two weeks ago to buy two infrastructure firms in which management held stakes.
Satyam postponed a board meeting on Monday to January 10 to give itself more time to consider options to shore up investor confidence, which analysts said could include a change of management as well as the board and a share buyback.
"The move shows that they are serious about the need to do more than just a share buyback, especially after such a hue and cry raised by investors," said Harit Shah, a sector analyst with Angel Broking in Mumbai.
Shares in Satyam rose as much as 17.8 per cent on Monday before ending up 9.4 per cent at 148.25 rupees, their biggest gain in more than two months. The board had been expected to consider a share buyback at the Monday meeting, but news last week that the outsourcer had been barred from doing business with the World Bank added to its woes