More observations on the Satyam scandal, in continuation from here.
The newly constituted three-man Board of the Satyam Computer Services, in their first interview have made a reference to the possibility of cash infusion by the Government to provide short-term liquidity support for the beleaguered company. Such credit support will be unprecedented in the Indian corporate history and raises important moral hazard concerns. The primary apprehension is whether tax payers money will be used to bailout Satyam shareholders. Will the Government take an equity stake in Satyam in return for the cash infusion? If so, at what rate will the stake be valued?
1 comment:
Satyam has done a very big scam.
Apostille
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