January 7, 2009 / 7:44 AM / 11 years ago

TIMELINE-Satyam chief quits, shares plunge

SINGAPORE, Jan 7 (Reuters) - The chairman of Satyam Computer Services SATY.BO, India’s 4th-biggest software services exporter, resigned on Wednesday, saying the company’s profits had been inflated over recent years, sending Satyam shares plunging more than 70 percent. [ID:nSP387669]

Following are recent key events at Satyam.

Dec. 16 - Satyam announces plan to buy two building firms part-owned by the outsourcer’s founders for $1.6 billion. It does a rapid U-turn, killing the deal just 12 hours later following a 55 percent plunge in the company’s share price in hectic U.S. trading SAY.N.

Dec. 17 - Chairman B. Ramalinga Raju says the about-turn reflected negative investor reaction. Satyam shares continue to slide, falling by a third on concerns about corporate governance.

Dec. 18 - Satyam board says will meet on Dec. 29 to consider a share buyback in a bid to restore confidence.

Dec. 23 - Satyam barred from business with the World Bank for eight years for providing Bank staff with “improper benefits”. Its shares fall another 14 percent to their lowest in more than 4-½ years.

Dec. 24 - Satyam shares rally amid market talk the outsourcer may have become an attractive takeover prospect given the steep share price fall.

Dec. 25 - Satyam says it asked the World Bank to withdraw “inappropriate” statements.

Dec. 26 - Mangalam Srinivasan, an independent director, resigns.

Dec. 28 - Satyam defers board meeting until Jan. 10 to give itself time to consider options to shore up investor confidence.

Dec. 29 - Three more directors quit, but Satyam shares rise on hopes for moves to improve shareholder value and corporate governance.

Dec. 30 - Shares extend gains on talk of private equity interest and a management change. One of Satyam’s largest investors says it could sell its stake.

Jan. 2 - Satyam says its founder’s stake fell by a third to 5.13 percent. Analysts say this means the company is a more attractive bid target.

Jan. 5 - Satyam shares tumble 9 percent on concern that corporate governance issues could hit new business.

Jan. 6 - Shares rise more than 7 percent on a newspaper report Satyam had been approached by smaller rivals Tech Mahindra (TEML.BO) for an all-share merger. (Compiled by Dhara Ranasinghe, Editing by Ian Geoghegan)

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