Friday, January 16, 2009

Satyam Banks on Arrested Chairman’s Deputies to Retain Clients

Satyam Computer Services Ltd., India’s fourth-largest software exporter, is relying on top lieutenants of its arrested founder to retain clients as the government-appointed board struggles to find replacements.

Ram Mynampati, sacked from the board after a three-day stint as interim chief executive officer, and executive Virender Aggarwal are meeting customers in the U.S. and Singapore to assure them Satyam can continue to provide technology services, according to a statement sent to the Bombay Stock Exchange.

Satyam needs clients including FIFA to keep paying after the government ruled out a bailout and the company said it may take three months to sort out its accounts. Satyam’s new directors meet tomorrow to find replacements for managing director Rama Raju and chief financial officer Srinivas Vadlamani, a week after their arrest in India’s biggest fraud inquiry.

“The new board is doing everything to try and stabilize the situation, find a new chief executive officer, reassure clients, but all this takes time,” said Krupal Maniar, a Mumbai-based analyst at ICICI Securities Ltd. “Unfortunately, time is what’s against them.”

Vivek Paul, the former vice chairman of Wipro Ltd., India’s third-largest computer services provider, declined to comment on an Economic Times report that he’d join Satyam. Paul quit private equity firm TPG last month, where he had been a partner since leaving Wipro in October 2005.

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