The board of troubled Satyam Computer Services is set for an overhaul at a meeting to be held on January 10, after three more independent directors resigned on Monday.
That takes to four the number of board members who have quit in the wake of the company’s aborted deal to use its $1.6 billion in cash to fund the purchase of two realty firms controlled by its founders, who may end up relinquishing pledged Satyam shares.
The latest to quit are Vinod Dham, known as the father of the Pentium chip for leading Intel’s Pentium team in the early 1990s, Krishna Palepu, professor of business administration at the Harvard Business School, and M. Rammohan Rao, Dean of the Indian School of Business. The first one was Mangalam Srinivasan on December 25.
SRSR Holdings Pvt Ltd, which holds 8.27 per cent of the 8.61 per cent promoter stake in Satyam, has given its entire holding as collateral. Satyam’s shares fell sharply to Rs 148.25 on Monday at the Bombay Stock Exchange (BSE), down from Rs 544 on May 30. The current market value of the (5.57 crore) shares pledged amounts to Rs 826.16 crore.
Satyam’s founder and chairman Ramalinga Raju has asked the board to include the pledging of shares on the board’s agenda on January 10.