Satyam to Employees – You’ll get January Salary

Indian IT crook Satyam Computer Services is telling employees that they will receive their salaries for January.

That means all ye Satyam employees can pay your mortgages, car loans and next month’s credit card bills.

Hey guys, who knows what will happen with your February salary. So, go slow on splurging.

At its meeting today, Satyam’s government-named board appointed Goldman Sachs and Avendus as investment bankers to assist it in exploring several strategic options, including identification of strategic investors; obtaining expressions of interest; and ensuring a fair and transparent approach to the process.

Satyam board member T.N.Manoharan said selling parts of the company was currently not under consideration.

According to Manoharan, several entities and private equity investors had expressed interest in evaluating the company both as an integrated entity or in portions of the business.

The board also today appointed Boston Consulting Group as management advisors to spearhead the organization’s reemergence after the recent accounting scandal dubbed as India’s Enron.

Today’s meeting was the fourth since the new board since January 10. The next board meeting is set for February 5.

One Response to "Satyam to Employees – You’ll get January Salary"

  1. SRINIVAS   January 28, 2009 at 1:08 am

    Larsen & Tubro have increased their stake from 4% to 12 % while LIC (life insurance co – PSU) has 17% stake …

    so a strong probability of LT taking over with support from Govt and other investors .. Responds:

    We remain skeptical of Satyam’s long term prospects. It’s tainted goods now plus U.S. financial services cos are in dire straits…, GE is in bad shape…

    Excerpt from a Tower Group Press Release put out a short while ago (12:01 AM ET):

    After several years of consistent 4 to 6 percent growth, new research from TowerGroup finds that overall technology spending by U.S. financial services institutions is now declining for the first time in U.S. history. As a result, firms are expected to scrap ineffective (or low-impact) projects and delay new investments until 2010.

    The past year proved to be a watershed year for change in the financial services industry, and by extension the technology market. Mandates for improved risk management and compliance, relentless globalization, and startling shifts in customer demographics are forcing financial services players to retire old business models. So even as institutions pull back on IT spending, TowerGroup advises that strategic technology investment remains an imperative for institutions’ survival and growth.

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