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TIMELINE - Satyam chief quits, shares plunge
January 7, 2009 / 7:56 AM / 9 years ago

TIMELINE - Satyam chief quits, shares plunge

SINGAPORE (Reuters) - The chairman of Satyam Computer Services, India’s 4th-biggest software services exporter, resigned on Wednesday, saying the company’s profits had been inflated over recent years, sending Satyam shares plunging more than 70 percent.

Satyam shares dive on disclosure. January 7, 2008. REUTERS/Graphics

Following are recent key events at Satyam.

Dec. 16 - Satyam announces plan to buy two building firms part-owned by the outsourcer’s founders for $1.6 billion. It does a rapid U-turn, killing the deal just 12 hours later following a 55 percent plunge in the company’s share price in hectic U.S. trading.

Dec. 17 - Chairman B. Ramalinga Raju says the about-turn reflected negative investor reaction. Satyam shares continue to slide, falling by a third on concerns about corporate governance.

Dec. 18 - Satyam board says will meet on Dec. 29 to consider a share buyback in a bid to restore confidence.

Dec. 23 - Satyam barred from business with the World Bank for eight years for providing Bank staff with “improper benefits”. Its shares fall another 14 percent to their lowest in more than 4-½ years.

Dec. 24 - Satyam shares rally amid market talk the outsourcer may have become an attractive takeover prospect given the steep share price fall.

Dec. 25 - Satyam says it asked the World Bank to withdraw “inappropriate” statements.

Dec. 26 - Mangalam Srinivasan, an independent director, resigns.

Dec. 28 - Satyam defers board meeting until Jan. 10 to give itself time to consider options to shore up investor confidence.

Dec. 29 - Three more directors quit, but Satyam shares rise on hopes for moves to improve shareholder value and corporate governance.

Dec. 30 - Shares extend gains on talk of private equity interest and a management change. One of Satyam’s largest investors says it could sell its stake.

Jan. 2 - Satyam says its founder’s stake fell by a third to 5.13 percent. Analysts say this means the company is a more attractive bid target.

Jan. 5 - Satyam shares tumble 9 percent on concern that corporate governance issues could hit new business.

Jan. 6 - Shares rise more than 7 percent on a newspaper report Satyam had been approached by smaller rivals Tech Mahindra for an all-share merger.

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