Satyam Appoints Goldman Sachs and Avendus as Investment Bankers
January 27 2009 - 11:49AM
PR Newswire (US)
- Short-term liquidity secured; payment of January salaries
confirmed HYDERABAD, India, Jan. 27 /PRNewswire-FirstCall/ --
Satyam Computer Services Limited (NYSE:SAY) today announced that
its board of directors has appointed Goldman Sachs and Avendus as
investment bankers. The firms will help the board explore several
strategic options, including identification of strategic investors;
obtaining expressions of interest; and ensuring a fair and
transparent approach to the process. The board also appointed
Boston Consulting Group (BCG) as management advisors. Three senior
BCG representatives will work closely with Satyam's board and
leadership team to spearhead the organization's reemergence. "It is
important to note that BCG will not charge a fee for their
services. This reflects their commitment to the task at hand," said
Satyam Board Member Deepak Parekh. Additionally, the board: --
Concluded most discussions about Satyam's financing requirements,
and will wrap up negotiations with banks in the coming days. As a
result, immediate operational expenses will be managed. --
Reaffirmed that January salaries will be paid as scheduled and from
internal accruals and receivables. -- Further validated Satyam's
headcount. Sufficient data now exists to show that numbers reported
earlier are accurate. -- Discussed Satyam's future management
structure, and will issue a statement on this matter this week.
"The board has received several proposals from corporate entities
and from private equity firms," said Board Member T.N. Manoharan.
"Some are interested in evaluating Satyam as an integrated entity,
while others have expressed interest in portions of Satyam's
business. However, selling 'parts' of Satyam would be contrary to
the Indian government's mandate regulating the company's affairs as
a going concern. Therefore, we are not currently considering that
option." Manoharan was circumspect regarding a recent move by a
corporate entity to acquire large portions of Satyam shares. "The
reasons for that move would be best explained by the buyer," he
said. "At this stage, it should not be taken as an indication of
support by the government-nominated board for a change of control
at Satyam. The board has received an adequate number of bidding
interests. As such, in consultation with SEBI and the Indian
government, it will devise appropriate, fair and transparent
measures to enable open bids. It is important to remember that
Satyam is a government-administered company, reporting to the
Company Law Board and the Ministry of Corporate Affairs." In the
meanwhile, Satyam leaders and the board continue to reach out to
customers to ensure business continuity. "I speak with quite a few
customers and partners every day, and it is heartening to note that
they continue to engage with us, confidently," said Board Member
Kiran Karnik. "While a few are discussing risk mitigation plans,
most are monitoring our performance closely and want to see Satyam
return to long-term sustainability. "Additionally, we have been
reassured by several key customers who have sent strong messages to
other service providers asking them to refrain from poaching
Satyam's associates or business. We have also seen a steady
improvement in statement of work extensions." Manoharan said these
actions reflect Satyam's determination to restore stakeholder
confidence, ensure stability and growth, and "bring back the glory
Satyamites truly deserve." Tuesday's was the fourth meeting of its
new board of directors since Jan. 10 (it also convened for more
than three hours yesterday) and was chaired by Mr. Manoharan. Its
next meeting will be Feb. 5. About Satyam Satyam (NYSE:SAY), a
leading global business and information technology services
company, delivers consulting, systems integration, and outsourcing
solutions to clients in numerous industries across the globe.
Satyam leverages deep industry and functional expertise, leading
technology practices, and an advanced, global delivery model to
help clients transform their highest-value business processes and
improve their business performance. The company's professionals
excel in engineering and product development, supply chain
management, client relationship management, business process
quality, business intelligence, enterprise integration, and
infrastructure management, among other key capabilities. Satyam
development and delivery centers in the US, Canada, Brazil, the UK,
Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and
Australia serve clients, including Fortune 500. For more
information, see http://www.satyam.com/. Safe Harbor This press
release contains forward-looking statements within the meaning of
section 27A of Securities Act of 1933, as amended, and section 21E
of the Securities Exchange Act of 1934, as amended. The
forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward-looking statements.
Satyam undertakes no duty to update any forward-looking statements.
For a discussion of the risks associated with our business, please
see the discussions under the heading "Risk Factors" in our report
on Form 6-K concerning the quarter ended September 30, 2008,
furnished to the Securities and Exchange Commission on November 7,
2008, and the other reports filed with the Securities and Exchange
Commission from time to time. These filings are available at
http://www.sec.gov/ DATASOURCE: Satyam Computer Services Limited
CONTACT: For clarifications: , or Global Satyam PR Representatives:
India: Deepa Jayaraman, +91-981-980-8681, , or US: Melissa Baratta,
+1-212-679-3300 ext. 118, , or Europe: Sandeep Thawani,
+44-783-010-3838, , or Asia-Pacific: Dan Bleakman, +61-439-408-484,
, or Reshma Wad Jain, +65-98-140-507, , all of Satyam Computer
Services Limited Web Site: http://www.satyam.com/
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