Over 50 individual shareholders on Wednesday gathered to attend the annual general meeting of IT outsourcing company Mahindra Satyam expressing their displeasure over the company’s merger plan.
The shareholders were visibly clear about what they were expecting from the new Satyam management and seem to be in a harmonious agreement to question chairman, Vineet Nayyar, on the same.
At the ‘journalists strictly restricted’ AGM, its second after Tech Mahindra took over Satyam Computers, shareholders opposed the proposal to merge Mahindra Satyam with the parent or the other way round, and asked some time to be given for the company to give its best.
A shareholder, who didn’t want to be identified said, “A merger benefits companies that are in good health, but not in this case. Satyam and Tech Mahindra are not on the same standing.”
Nayyar, however, seemed undeterred by the shareholders’ response. “The merger plan is on the cards and shareholders should leave its timing to the management. Satyam was bought with the intention of merging with Tech Mahindra. Satyam’s strength lies in ERP (enterprise resource planning) solutions, while Tech Mahindra has a strong hold in the telecom vertical. Both are synergistic and will be merged.”
