Satyam's board to consider alternatives in wake of scandal

By Lisa Kerner

Charlotte, N.C., Jan. 27 - Satyam Computer Services Ltd.'s board appointed Goldman Sachs and Avendus to assist in the review of strategic options including identifying strategic investors and obtaining expressions of interest.

The board, which met Tuesday, has received several proposals from parties interested in evaluating Satyam's business in whole or in part, according to a company news release.

Selling off parts of Satyam is not an option under a stipulation by India's government, the company said.

As previously reported, Satyam, a Hyderabad, India-based outsourcing company, was thrown into turmoil when its chairman and founder, B. Ramalinga Raju, unexpectedly resigned after admitting he overstated the company's cash and bank balances by $1 billion and inflated profits over the last several years.

The government then stepped in to replace Satyam's board and ensure the company's uninterrupted operations.

Raju, along with his brother and former Satyam managing director B. Rama Raju, were arrested on charges including criminal conspiracy and forgery. PricewaterhouseCoopers, Satyam's auditor, suspended two of its India-based partners in connection with the scandal.

Also at Tuesday's meeting, Satyam's board appointed Boston Consulting Group, which agreed to act as a management adviser free of charge.

Satyam's board determined that January salaries will be paid and acknowledged the support of some of the company's key customers.

The meeting was the board's fourth since it was reconstituted on Jan. 10.

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