Raju says... "its an unconventional move !". Analysts say it is a "foolish move." Shareholders say it is a "fraud move"! Whatever it is, this move has already effected the reputation of the firm.
The deal was called off overnight as there is a strong dissent among the shareholders. Satyam, stock was down 55% in NYSE & 30% in Indian bourses. Maytas stock was down 20% on each day for the past 3 consecutive trading sessions. Many deals in the pipeline will be effected and thereafter the impact of this act might cost its employees too. I will not be surprised if there is a change in top management in the next quarter or two. There are a series of similar things which have against Satyam in the recent past. First UPAID case. Then the WORLD BANK case & now the MAYTAS deal. This is no less than a self destruction ceremony. Dont know where we are headed & whats next in store but one more such immatured act might cost us dearly.
With major US financial & auto comapanies queuing up to file for bankrupcy and there after seeking bailouts, the future of all IT companies is looking bleak. This quarter can easily be the last one where the IT comapanies can show reasonable profits & growth rate. Its going to be too tough to sustain this growth from next quarter. If rupee starts appreciating once again, it will add to IT woes.