T R Prasad, independent director on the Satyam board, defended the decision to acquire the two Maytas firms, and said that the purpose was to create shareholder value. "We looked at it and according to our best judgment we thought the decision was in the long-term interest of the company,’’ Prasad told Business Standard.
Prasad said the unrelated diversification was required as "entrepreneurs need to come up with unconventional solutions.’’
''The question before us was if we wanted to buy a Larsen & Toubro and Punj Lloyd was it available?’’ Prasad argued. ''As independent directors, we did record our conditions for purchase of land and other related assets.’’
''The board resolution amounted to merely exploring the possibility of valuation,’’ he said.
