Satyam asks World Bank to say sorry, or else... | business | Hindustan Times
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Satyam asks World Bank to say sorry, or else...

business Updated: Dec 25, 2008 20:16 IST
HT Correspondent

Beleaguered Satyam Computer Services on Thursday demanded an apology from the World Bank for causing harm to the company by making “inappropriate public statements” after the international institution blacklisted the Hyderabad-based company for eight years on grounds that it gave improper benefits to Bank staff and inadequate documentation on deals.

The World Bank order was a second blow for Satyam already reeling under major share price erosion after it called off under shareholder protest a controversial deal to acquire two infrastructure companies controlled by the founders of Satyam using $1.6 billion from the IT company.

“Satyam formally requested today that the World Bank immediately withdraw those statements, that it issue a new statement apologising to Satyam for the harm done to the company due to the Bank's actions, and that it provide Satyam with a full explanation of the circumstances related to the Bank’s inappropriate statements,” Satyam said in a statement.

It said it would evaluate “all possible options” –suggesting retaliatory options.

The World Bank did not budge. “We stand by our earlier statement,” its spokesman told Hindustan Times.

Satyam said it usually does not comment publicly on matters involving customer relationships but was forced by the Bank’s words.

Last week, the Securities and Exchange Board of India announced it would investigate Satyam for its aborted $1.6-billion deal with two companies-Maytas Infrastructure and Maytas Properties. Satyam Chairman Ramalinga Raju is also the primary shareholder in the two Maytas companies.