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.
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