Satyam Computer Services today announced that it is not going ahead with its proposed acquisition of Maytas Properties and Maytas Infra, in light of the feedback received from the Investor community.
Commenting on this decision, Satyam Chairman, Raju said, “We have been surprised by the market reaction to this decision even though we were quite positive about the merits of the acquisition. However, in deference to the views expressed by many investors, we have decided to call off these acquisitions.”
Satyam finally settled with a huge loss of over 30% (Rs 68) at Rs 158.
Earlier today, the stock opened Rs 27 lower at Rs 200, and continued to drift lower as the day progressed. The stock touched a low of Rs 15. The counter recorded hefty volumes of around 3.34 crore shares as against the two-week average daily volumes of around seven lakh shares on the Bombay Stock Exchange.
Yesterday, the company's board approved to invest $1.6 billion in Maytas Infra and Maytas Properties. Following which, the ADR took a hard knock and slumped 54.5% to $5.70 despite a strong rally in the US markets.
Also read:-
Satyam under fire for $1.6 bn Maytas deal
Satyam: Incredible!