Satyam Hopes Clients Can Convince Bidders To Buy - InformationWeek
IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
3/27/2009
12:45 PM
Bob Evans
Bob Evans
Commentary
50%
50%

Satyam Hopes Clients Can Convince Bidders To Buy

Efforts by Satyam's suitors to determine the true value of the company have been hampered by several years' worth of fraudulent financial reports along with some recently filed class-action lawsuits. So Satyam is hoping those bidders can get a glimpse of the real company by speaking with clients involved in ongoing major projects.

Efforts by Satyam's suitors to determine the true value of the company have been hampered by several years' worth of fraudulent financial reports along with some recently filed class-action lawsuits. So Satyam is hoping those bidders can get a glimpse of the real company by speaking with clients involved in ongoing major projects.General Electric, Nissan, Nestle, and the National Australia Bank are among the blue-chip clients prospective buyers have begun to speak with as Satyam attempts to give those bidders reasons to believe that significant brand equity and value exists within the Satyam employees as opposed to the tarnished corporate brand itself, reports the Economic Times of India:

Satyam is expected to allow short-listed bidders to interact with some of its committed customers as part of the due diligence process for acquiring the scandal-hit company, and the company has already started.

Customers such as Nestle, DuPont, Saint Gobain and GE continue to work with the scandal-hit firm despite ambiguities about change in management and other financial irregularities.

At National Australia Bank, a spokeswoman told the Economic Times that Satyam is hitting "all its service-level commitments and contractual obligations," and that the bank has "no plans to transition any further processes as part of the second wave of our technology offshoring program."

Satyam's plan to give potential buyers direct connections with customers could well turn out to be a brilliant move on Satyam's part because, at this point, the company can only stand to gain by attempting to draw very clear distinctions between its 50,000 employees and the work they've done for clients, from Satyam's disgraced founder and CEO who is facing not only lie-detector tests but also possibly more-intense questioning while under "truth-serum" sedation.

The customer testimonials could also counterbalance the negative impact of recently filed class-action lawsuits and the belief of investigators that the fraud perpetrated by CEO B Ramalinga Raju and his brother could exceed the initial estimate of $1.5 billion.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll