Mahindra Satyam meet on merger proves stormy
08 Sep 2012
Vineet Nayyar, chairman of Mahindra Satyam, lost his cool at the annual general meeting at Bangalore on Friday when some investors, including IL&FS, demanded that Rs1,230 crore should be shown as a liability.
The amount in question was the alleged advances by firms promoted by Ramalinga Raju's kin to Satyam Computer Services. Mahindra Satyam insists on maintaining this in the 'suspense account'.
A representative of IL&FS, which bought the Raju kin-promoted Maytas Infra, has demanded that the Rs1,230 crore be shown as a liability.
''We have been raising this issue for three years. The entire amount came through cheques and through the banking system,'' he said.
Minority shareholders of Mahindra Satyam have also made a vociferous demand for a change in the swap ratio of shares as the company braces for a merger with Tech Mahindra.
Several shareholders, including IL&FS, have alleged that the swap ratio favours Tech Mahindra and does little to benefit them.
They also wanted the company to consider 31 March 2012 as the cut-off date for the merger as it performed much better in that year as compared to 2011. They wanted a ratio of 1:4 (one TechM share of Rs10 each for every four Satyam shares of Rs2 each) and not 1:8.5 as announced by the company.
The silver jubilee AGM witnessed sharp criticism from investors, particularly on the poor valuation of Mahindra Satyam. They said the underlying value of the firm is much higher than that of Tech Mahindra.
