Infrastructure
Satyam's Diversification, A Bridge To Nowhere (SAY)
Published:
Last Updated:
Satyam Computer Services Ltd. (NYSE: SAY) is seeing its stock crushed this morning after the company’s board of directors approved acquisitions of infrastructure development companies Maytas Infra Ltd. and Maytas Properties Ltd. What is interesting is that this acquisition of the two Maytas was being sold as a view to remove the risk from its core business of software and IT-outsourcing services. The purchase price is roughly $1.6 billion, and technically these are majority stakes being taken.
This move is almost mind boggling. Could you imagine IBM buying aconstruction company? Could you imagine an infrastructure companybuying an IT-consulting firm? Niche plays are one thing if they savecompanies money. This is something else entirely.
It seems that the IT-outsourcing is reaching some peaks on its ownright now. Some may be on the economic problems that the world isgoing through. Some may be on the laws of growth after a critical masshas been reached.
Taking on infrastructure seems a stretch here. Actually, more than a stretch.
Satyam shares are paying the price. Its market cap is now about $1.95billion, but that is only because shares are down right over 50%today. Its prior 52-week trading range was $10.80 to $29.84. Withshares at $5.85 and now at roughly 5-year lows, you have to wonder whaton earth the company was thinking.
Jon C. Ogg
December 16, 2008
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.