Hyderabad/New Delhi: Satyam's disgraced chairman Ramalinga Raju had made an emotional pitch that the company faced a takeover threat from IBM and their likes, to avert which he wanted the board's support to diversify into other areas.
Network18 has access to the minutes of the December 16 board meeting where CFO Srinivas Vadlamani and Ram Mynampati justified the acquisition to the board. However, neither Ramalinga Raju nor his brother Ram Raju were present at the meeting.
Vadlamani said Ersnt &Young had valued Maytas. The deal however was questioned by independent directors Vinod Dham and Mangalam Srinivasan. Both directors questioned timing of the deal and Srinivasan said the board should have been involved in the deal from the very beginning
Board member Professor Rammohan Rao said the deal could mean diluting Satyam's core competence
But Vadlamani said the deal was needed due to de-growth in the I-T industry
E & Y has said, “We would like to clarify that Ernst & Young was neither the advisor to the proposed Satyam transaction and nor were we engaged by Satyam Computer or any of its subsidiaries to conduct the valuation of Maytas Proprties. We learnt of the proposed Satyam-Maytas transaction after it was announced publicly."
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