Satyam looks to reassure customers, investors

Interim CEO says outsourcer is working to improve liquidity after accounting fraud

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Mynampati today sought to dispel speculation that, as a member of the board himself and a high-profile spokesman for Satyam, he was privy to the fraudulent accounting moves. He said that like other board members, he only received financial records that had been verified by the company's auditors.

Earlier today, the company tried to convey a measure of stability by issuing a statement saying that 10 of Satyam's most senior executives and 40 regional managers had pledged to stay with the outsourcer.

Although no legal action has been taken in India against Raju or Satyam thus far, two law firms have filed class-action lawsuits in the U.S. on behalf of investors who hold American Depositary Receipts for shares of Satyam's stock.

In addition, the Securities and Exchange Board of India, that country's securities regulator, has ordered an investigation into the Satyam episode. SEBI investigators visited the company's offices today, Mynampati said.

Customer decisions will largely depend on how quickly Satyam's management moves to clean up the mess at the company, Apte said. He added that if the company is acquired or an investor steps in and provides new funding before the end of this month, most clients are likely to stick with Satyam.

Copyright © 2009 IDG Communications, Inc.

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