Tuesday, December 23, 2008

Is Satyam (SAY) a Takeover Target?
Check it out:

Shareholder Pattern


Market Capitalization
Valuation Based on Indian Share Price (In INR)
Share Price: INR 140.70
Market Cap: INR 94,336,436,525

Valuation Based on ADR Price (In USD ($))
ADR Price: $7.35
Market Cap: $2,464,011,402

Cash In Hand
Total: $1,200,000,000
Per ADR: $3.58
Per Indian Share: INR 85.91

Why is Satyam vulnerable ?

  • Lack of confidence in Satyam board, after the Maytas takeover episode

  • Reputation damage after World Bank barred Satyam

  • Loss of clientele due to the global Recession

  • Lack of promoters control over the company

All the above make a case for a takeover bid; the cash value of the stock is itself lucrative enough to consider this target.



Views expressed above, are solely based on my own analysis.
All the numbers provided here are in the ballpark.