It has become like a reality TV show, like a scramble on who will stay in the house. After the government filled in three directors to the board of troubled Satyam Computer Services on Sunday, leading institutional investors and the Andhra Pradesh government appeared to be plotting for berths on the board that would set a bailout plan.
The government has yet to take a call on remaining board members while the core board, comprising HDFC Chairman Deepak Parekh, former president of industry association Nasscom and former stock regulation czar C Achuthan, is set for a meeting
in Hyderabad on Monday.
The insititutional investors, with their money in the besieged company, are happy about the government’s bulldozing of the rump board after the exit if Chairman Ramalinga Raju following his confessions of corporate fraud. But they do want to have a sustained say.
US based Lazard Asset Management which is estimated to hold the highest 7.4 per cent in the company has already written a letter to the government for representation on the new board.
“The government had received a letter from Lazard about representation on the new board, and it was being looked into,” a senior government official said.
State-owned LIC which holds 4.34 per cent stake in Satyam has left the decision on the government. “We are investors and any decision on LIC to be appointed as a member on the board will lie completely with the government,” said its chairman Thomas Mathew.