Investors welcome Govt move, expect revival of confidence | india | Hindustan Times
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Investors welcome Govt move, expect revival of confidence

Investors in IT services provider Satyam Computer Services, including major shareholder LIC and Lazard, on Sunday welcomed the government's move to appoint three directors as they expect the new board to take immediate steps to restore the confidence of shareholders and clients.

india Updated: Jan 11, 2009 16:57 IST

Investors in IT services provider Satyam Computer Services, including major shareholder LIC and Lazard, on Sunday welcomed the government's move to appoint three directors as they expect the new board to take immediate steps to restore the confidence of shareholders and clients.

Commenting on the development, LIC Managing Director Thomas Mathew said the appointment of the eminent three persons -- Deepak Parekh, Kiran Karnik and C Achutan -- would restore confidence among the investors, clients and shareholders.

Clarifying that LIC is not seeking a board seat, Mathew said, "We are part of the government. (With reference to) whatever calls the government takes we will play a proactive role."

"Our interest is to see the company comes up more than seeking board seat...We will await further development in this matter," he added.

When asked if LIC is looking at increasing its stake in the company, Mathew said it is too premature to talk about it.

Currently, LIC, the largest life insurance company of the country, has over a 4 per cent stake in Satyam Computer Services.

Terming the appointment of new directors as a welcome step, the lawyer of the US-based fund manager Lazard International, Hitesh Jain, said, "We would like to be part of the discussion process. We have written to the Government and Satyam Computer and await their responses. If they take any decision, we should be consulted."

Lazard Asset Management currently holds about a 7.34 per cent stake in Satyam Computer and is thus the largest shareholder of the company.