Satyam bidding process started last week where request for proposal was sent to many companies who have shown interest in taking over Satyam. Few of these names were - L&T, Spice Group, iGate, Hinduja group and also IBM, HP names were mentioned.
Due to ambiguity of pending class action suits, its impact and current financial situation of company, IBM and HP didn't even proceeded further while iGate and now Hinduja have stepped out of race. It leaves only two front runners - L&T and Spice Group. Both have shown a strong interest as it would be strategically a big step for any of them to acquire a large IT service provider company with presence in more than 50 countries and a good skilled resource base of more than 40,000.
On morning of 23rd March 09 L&T and Spice group have been selected for second phase of bidding. It has not been disclosed who else has qualified or have bid for Satyam. There are expected to be seven players who are shortlisted for second stage of bidding which may show Tech Mehindra also in race..
iGate has issues a statement before that its bidding price will be much lower than current market price. Typical market sentiements are also in line with this feeling and from the time bidding process has started, Satyam share is slidding down on Indian stock exchange. Today it has already gone down by 2.7% of its previous close 43.9 to 42.7 and still going low.
It is expected that Satyam share might trade in range of 30-40 this week because of high risk invovle in this bidding process (for company who will buy Satyam). Rating agency Fitch withdrew its AAA rating for Tech Mahindra citing the risks involved in bidding for the software company
24th March 2009
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Seems like Modi, Spice group chairman, is not happy how things are panned in Satyam bidding process. Name of all players are not revealed and goign forward news are not in public.
Also for bidders now there are mixed news in market. Business standard has reported that there are six bidders and not seven which may include IBM, HP and KKR Private equity investors.
Watch out this space for more news on Satyam Bidding. Please leave your comments on what you think will be share price for bidding and who will be the ONE.
Sunday, March 22, 2009
Thursday, February 5, 2009
Murthy, Satyam's new CEO
AS Murthy, a vetreran of Satyam has been appointed as new CEO. Previous CEO Raju was arrested on charge of 7,000 crore fraud in company in Jan, 2009. Mr. Murthy has been associated with Satyam for 15 years and was heading company's global delivery unit.
Though it could be a concern for many that an internal face will not be able to clean Satyam's name in international community (as it is still not clear who are all were invovled in scam), it could be positive for current clients as they will be comfortable dealing with a known person than a strange new face.
Another good news for Satyam is to get sanction of Rs 600 crore of loan from banks for meeting operation expenditure of company. Company board was already putting effort to collect pending receivables from client and along with this loan, company could have enough cash in hand to plan a month wise strategy for improving situation.
What do you think? Will Satyam strike back or go down?
Though it could be a concern for many that an internal face will not be able to clean Satyam's name in international community (as it is still not clear who are all were invovled in scam), it could be positive for current clients as they will be comfortable dealing with a known person than a strange new face.
Another good news for Satyam is to get sanction of Rs 600 crore of loan from banks for meeting operation expenditure of company. Company board was already putting effort to collect pending receivables from client and along with this loan, company could have enough cash in hand to plan a month wise strategy for improving situation.
What do you think? Will Satyam strike back or go down?
US Stimulus package and Indian Industry
The almost $900-billion American stimulus plan for reviving the beleaguered economy has many interesting and intriguing aspects and will be analysed and discussed for long. One which is best for India is that most of the jobs (create or save 111,300 jobs) will be created in private sectors.
Image courtesy: http://uk.biz.yahoo.com/03022009/323/photo/main-points-president-barack-obama-s-economic-stimulus-plan.html
Also three hi-tech areas have been specifically mentioned in the new plan —
1. The computerisation of medical records
2. The creation of smarter electrical grids
3. The expansion of high-speed broadband access to the Internet in rural and undeserved communities.
While last point could seem as a favour to the already favour-able Obama public and not actually for reviving economy, mind you that much of today’s economic crisis is because of sentiments at various levels which are working against reforming measures and so letting the situation worsen by itself ex. Banks are not offering loans even to some enable candidates in fear of loosing money and so actually helping in making economy poorer. This is the time for creating new jobs which is one of the major actions for bringing economy back to its feet. So you don’t know, may be the least important point might turn out to be the revolutionary one in future. Do you think different?
With advances in Internet to bring availability of unlimited broadband will change the course of many industries like education, entertainment and many other businesses. Long distance learning could prove useful for India where services can be provided by IT giants and intellectual people of India can leverage technology to find employment (at reasonably good price:)).
New $11 billion amendment to help auto industry will surely help India as many of big auto makers are client for Indian industry (mainly IT). Improvement in health of General Motors will surely means some good news for Indians who are directly (India operations) or indirectly (IT Vendor) working for GM. Aid to create new highways and improving infrastructure will also in turn motivate increase in sale of automobiles which is part of this stimulus package.
Business using new concept like cloud computing can cut cost of their current application licenses and provide services on a more global sense. While US jobs will increase for new opportunities in health care, infrastructures and networking, India can support at lower level providing services in area where it is expert.
What are your views on this stimulus package – how this will help India and especially IT?
Image courtesy: http://uk.biz.yahoo.com/03022009/323/photo/main-points-president-barack-obama-s-economic-stimulus-plan.htmlAlso three hi-tech areas have been specifically mentioned in the new plan —
1. The computerisation of medical records
2. The creation of smarter electrical grids
3. The expansion of high-speed broadband access to the Internet in rural and undeserved communities.
While last point could seem as a favour to the already favour-able Obama public and not actually for reviving economy, mind you that much of today’s economic crisis is because of sentiments at various levels which are working against reforming measures and so letting the situation worsen by itself ex. Banks are not offering loans even to some enable candidates in fear of loosing money and so actually helping in making economy poorer. This is the time for creating new jobs which is one of the major actions for bringing economy back to its feet. So you don’t know, may be the least important point might turn out to be the revolutionary one in future. Do you think different?
With advances in Internet to bring availability of unlimited broadband will change the course of many industries like education, entertainment and many other businesses. Long distance learning could prove useful for India where services can be provided by IT giants and intellectual people of India can leverage technology to find employment (at reasonably good price:)).
New $11 billion amendment to help auto industry will surely help India as many of big auto makers are client for Indian industry (mainly IT). Improvement in health of General Motors will surely means some good news for Indians who are directly (India operations) or indirectly (IT Vendor) working for GM. Aid to create new highways and improving infrastructure will also in turn motivate increase in sale of automobiles which is part of this stimulus package.
Business using new concept like cloud computing can cut cost of their current application licenses and provide services on a more global sense. While US jobs will increase for new opportunities in health care, infrastructures and networking, India can support at lower level providing services in area where it is expert.
What are your views on this stimulus package – how this will help India and especially IT?
Monday, January 26, 2009
2009 Top 100 Employers. Where do you work or will work?
Fortune 500 magazine has announced top 100 companies in US for best emplyer. Alas, dream company of many, Google, has fallen to 4th place from its 1st position in this list. Below are the top 10 in this list -
NetApp
Edward Jones
Boston Consulting Group
Google
Wegmans Food Markets
Cisco Systems
Genentech
Methodist Hospital System
Goldman Sachs
Nugget Market
Adobe is on 11th place and couldn't make it to top 10 for 2009.
Though these are best employer, it doesn't mean that people are happy there becuase of a big fat paycheck. You will be surprised to see list below who are actually giving a hefty pay to their employees. Looks like, lower the pay and better is employer :). So think before you join company just based on what is coming in your pocket.
If you sutdy the other details for top companies, you might find that people are more satisfied due to facilities and perks being offered in these companies. While 2nd position Edward Jones has a 8th position for work life balance list, it also offers fully paid Sabbaticals. So it is great for your career inside and outside company. Also most of good companies are now allowing telecommuting and flexible office timing, which are much easier to employee in this internet world.
NetApp
Edward Jones
Boston Consulting Group
Wegmans Food Markets
Cisco Systems
Genentech
Methodist Hospital System
Goldman Sachs
Nugget Market
Adobe is on 11th place and couldn't make it to top 10 for 2009.
Though these are best employer, it doesn't mean that people are happy there becuase of a big fat paycheck. You will be surprised to see list below who are actually giving a hefty pay to their employees. Looks like, lower the pay and better is employer :). So think before you join company just based on what is coming in your pocket.
| Company Name | Pos in Top 100 | Role | Annual Pay |
| -------------------------- | ------ | ----------------------- | --------- | Bingham McCutchen | 30 | Associate | $256,312 | Lehigh Valley Hospital & Health Network | 76 | Physicians | $244,605 | Orrick Herrington & Sutcliffe | 87 | Associate | $240,955 | Alston & Bird | 36 | Associate | $203,655 | Perkins Coie | 82 | Associate | $190,126 | Devon Energy | 13 | Engineer | $186,882 | Chesapeake Energy | 73 | Toolpusher | $178,108 | Salesforce.com | 55 | Senior Sales Engineer | $172,303 | Arnold & Porter | 21 | Associate | $172,192 | Adobe Systems | 11 | Sr. Computer Scientist Software Development | $165,947 |
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