>> Thursday, December 18, 2008
Yesterday the badly beaten up stock Satyam which was down over 35% is up today 10% odd.
It had announced to buy Maytas Infra day before yesterday (the day when Satyams ADR was down over 55%). But yesterday it plans to cancel the deal.
Why did they do so? (Canceled the deal off)
Satyam didn’t expect the investors to have this kind of reaction, investors sentiments turned out to be negative. So they had to cancel the deal off.
What was the cost to Satyam?
Satyam actually lost 590 crores from its market cap. in just one day.
Why did Satyam want to acquire a stake in a Real Estate company?
Actually the answer is that and his family had 31% stake in Maytas Infra. They wanted to diversify and expand their business line.
Actually if the deal would have happened Satyam would be at a loss as the condition of the real estate in
The future of the stock looks bright if available within 152 – 158 range now.
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