Thursday, February 05, 2009

New Satyam CEO - The Developing Story

Looking at today news that Satyam old hand A S Murthy, has been appointment new CEO I am reminded an incident.

Some years back - I met a retired gentleman in Hyderabad and during the discussion he told me that he was working as a Consultant for the same Government Department he worked all his life.

When I said "you must be indispensible in the job due to experience" -

he replied "not really - all the mess that we created over the years, not everyone can take on it, hence we are retained in new Avatar"

Well, after lot of hype and media excitement the story ended in Satyam own backyard. This is a case - either none was keen to take on the position or Directors believed that one can take it on at this moment and understand the depth and breadth of the crisis to realise the end goals.

As I said in my blog some weeks back, it is clear that the new Directors are "mandated" to sell the company in entirety or in some blocks. What is seen or perceived outside (like potential bidders or outside interest) is not necessarily reflecting what is truly happening inside.

Now company is ON SALE, it is clear that no outsider is keen to take on the position. Keeping the company on tentative footing is not well either. Hence the clever directors have found safe old hand, A S Murthy who can help to identify the cost of the financial hole (Now that Ramalinga Raju is history and no one would like to help or work him from Satyam at this top level). This will help to complete the due diligence when books are looked in coming weeks for sale.

Essentially A S Murthy gave false hope to employees.
Directors have put the company on some steroids for few months
With a CEO in place predators can now take closer look at the books
Government saved thousands of crores

It will be a matter of time we will know the winner and losers.

No comments: