Investors may dump scandal-hit Satyam

Satyam Computer Services seems to be in deeper trouble with angry institutional investors moving rivals like IBM, Hewlett-Packard and Oracle to sell off their stakes in scandal-struck Satyam.

B Ramalinga Raju, chairman, Satyam Computer ServicesWith more allegations of wrongdoing hammering Satyam, shareholders are believed to be trying to arrange a sale of the company.

Private capital firms, including Aberdeen Asset Management, Fidelity and ICICI Prudential hold roughly 60 per cent of Satyam, against a mere 8.3 per cent stake held by the family of the company's founder and chairman, Ramalinga Raju.

The woes of Satyam Computer services seem unending as more and bad news continue to hit the company.

Coming on top of Satyam's attempt to buy out two construction companies owned by its founder's kin, the charges of bribery levelled by the World Bank against Satyam have only helped to reinforce investors' desire to part ways with Satyam.

The market is now eagerly awaiting the outcome of a Satyam board meeting set for 29 December.