New Delhi (PTI): A potential sale of Satyam Computers seems quite likely after the IT major's special board meeting next week, technology research firm Forrester has said.
Commenting on the company's "diversification failure" in relation to its aborted acquisition of two companies promoted by the family of Chairman B. Ramalinga Raju, the analysts at Forrester said "management and governance miscues could have a long-term impact."
"Earlier in December, Satyam's management team made a major miscalculation that will likely haunt the company for years. The firm announced and then quickly cancelled 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," an analyst with Forrester said in a new report.
"It is looking more and more likely that after the special board of directors meeting on January 10, 2009, there will be management and governance changes and even potentially the outright sale of the company," they noted.
The research firm also said Satyam's business associates need to review their dependence on the company to safeguard themselves from the fallout of a sell-off of the company.
"Sourcing and vendor management executives would 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," Forrester said.
Satyam's shares have been rising for past five past trading sessions amid speculations about a potential takeover attempt on the company.
The scrip, which had dipped to its 52-week low level of Rs 114.65 last week, has recovered amid speculations that the company is becoming a ripe target for takeover as valuations are turning attractive.
In the last five trading session the scrip has advanced over 35 per cent.
At the end of today's trade shares of Satyam settled with a gain of 7.17 per cent at Rs 182.35 on the Bombay Stock Exchange.
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