The Fate of Satyam is still unclear, but perhaps a bit more clearer than a couple of weeks ago. It is very likely that Satyam will be taken over by some other company - or at least - this is what would make sense for Satyam employees and Satyam investor's in my opinion. Clients of Satyam have already started giving up on Satyam, and satyam is likely to loose business due to the horrible reputation it has earned , thanks to the greed of disgraced Ramalinga Raju.

ET: Four Big Clients likely to desert Satyam

Troubles keep mounting for Satyam Computer Services. Four of its large clients, Citigroup, Merrill Lynch, Novartis and GlaxoSmithKline(GSK), are in talks to move their business from the Hyderabad-based company to other Indian IT firms. These clients contribute over $200 million to Satyam’s topline.
Satyam News TakeoverCurrently Spice Group, Hindujas and M&M have shown interest in acquiring controlling stake in Satyam Computers.
Reuters: India's Spice Group in Race for Satyam
NDTV: M&M sees strategic value in Satyam
ET: Now Hindujas in race for Satyam

As an investor, you might be wondering if there is some upmove expected in Satyam price. Is a takeover inevitable, and will the stock price jump once a takeover is announced? It is likely that Satyam might jump 10% or so on any concrete takeover news. I say this because the baseline for deal would be the average stock price for the past two weeks, which is somewhwere around Rs. 45. I would be surprised by any movement above Rs. 65. I could be wrong though- so make your own gamble. But I myself am not seeing any great opportunity here.

Feb 2, 2009

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