Will Satyam gets back from the allegation from world bank

These are the hard days for one of the leading MNC Company "Satyam Computer Services". Few days back there was a quite hard opposition from investors and shareholders in satyam against the companies’ decision of acquiring Maytas Infra and Maytas Properties by investing Rs. 6400 crores. The Securities and Exchange Board of India (SEBI) is already investigating the $1.6 billion Maytas deal that Satyam Computer had recently proposed and then backtracked within hours of the announcement on the face of huge investor outcry.

Before Satyam is trying to patch up from this opposition from shareholders it got a big blow better to say a big slap on the face of satyam from World Bank. At present Satyam is the top computer software services provider for World Bank. World Bank banned satyam for 8 years from conducting any business. This decision was taken by World Bank because; it (satyam) was meted out for "improper benefits to bank staff" (Briding World Bank staff) and "lack of documentation on invoices"

The news on the ban was broken by Fox News, which said that from 2003 to 2008, the World Bank paid Satyam hundreds of millions of dollars to write and maintain all the software used by the bank throughout its global information network. But, concerns first arose when the company sold preferential stock options to the Bank's CIO Mohamed Muhsin. The transaction was considered improper and Muhsin was asked to leave.

By all these impacts Satyam’s share went to the lowest price, there was a shed of 13.6% on Tuesday to close at Rs 140.40, its lowest in more than four-and-a-half years. In New York, Satyam ADRs were 16.5% lower at $6.90 in early trade. In all, in the Indian markets, the share has lost 28% since last week when it announced the deal with Maytas companies.