(By Anthony Miller). Investors pushed Satyam’s ADR (US) stock up 60% on Friday after the new board, instituted by the Indian government a couple of weeks ago, issued a statement on the company’s future. In outline:
- New funding arrangements should be in place by Wednesday to assure payment of employee salaries and vendors. This will see the company through till March '09.
- A new CEO and CFO “of global standing and recognition” will be appointed by the end of the week.
- Customers are still releasing new work to Satyam. Customer attitudes have mellowed from “alarm” to “cautious optimism”.
- Employee attrition “remains well under control”.
The first problem the new top team will have to face is what exactly is ‘real’ within Satyam, and what was a figment of Raju’s ‘creative accounting’? Even employee numbers are being questioned. Salvaging Satyam’s business (at least the ‘good’ bits) and its reputation may not turn out to be ‘Mission Impossible’, but it will certainly be ‘Mission Very Tricky Indeed’.
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