Thomas Victor

Satyam Management Plans to Stay, Unveils Crisis Plan

The strange thing is that the CEO did not STEAL the money.

At times when profit growth was 2% he reported 30-40% profit growth allegedly to keep the stock price up so that Satyam wouldn't be the target of hostile takeovers. So the cash reserves just weren't there in the first place.

He did not sell any shares to take advantage of the inflated share price. In fact to keep the operation running he took out huge loans using more than half of his 8% of Satyam shares as collateral. A lot of those shares were sold by the institutions that gave him loans and now he maybe has only 3% of Satyam shares.

Very puzzling..