Dec. 30 (Bloomberg) -- Satyam Computer Services Ltd.’s Chairman Ramalinga Raju wrote to the company’s employees as the software provider struggles to regain investor confidence after four directors quit following a botched acquisition.

“Satyam did not, and does not now, intend to retreat” from its main computer-services business, and will focus exclusively on these markets, Raju said in the letter today, a copy of which was made available to Bloomberg. “I ask for your continued faith in Satyam and for your steadfast focus on your customers.”

Satyam, India’s fourth-largest computer-services provider, needs to restore its credibility after shareholders forced the Hyderabad-based company to scrap the Dec. 16 agreement to buy unrelated businesses from Raju’s family. On Dec. 23, the World Bank confirmed it had placed an eight-year ban on Satyam for providing “improper benefits” to the bank’s employees.

Customers still trust the Indian software provider, Raju said in the letter, without providing details.

The board had been “unanimous” in its approval of the $1.6 billion acquisitions of Maytas Properties Ltd. and Maytas Infra Ltd., Raju reiterated in the letter, and asked that employees strengthen the company by “delighting customers.”

Employees were “demotivated” the Times of India newspaper reported today, citing an unidentified company executive. Some employees have started looking for other jobs, the newspaper said.

The software provider’s board is slated to meet Jan. 10 and Satyam has hired DSP Merrill Lynch Ltd. as an adviser on “strategic” options including a possible stake sale by Raju.

Satyam rose 8.5 percent to 160.7 rupees in Mumbai trading, increasing its gains to 19 percent since it announced Dec. 27 the appointment of the adviser. Still, the stock has lost 29 percent since the aborted Dec. 16 acquisition plans.

Satyam was founded in 1987 by Ramalinga Raju, 53, and his younger brother, Chief Executive Officer Rama Raju. It counts ArcelorMittal, the world’s largest steelmaker, and Nissan Motor Co., Japan’s third-biggest carmaker, among its customers. Satyam had 52,865 employees at the end of September, according to its Web site.

To contact the reporter on this story: Harichandan Arakali in Bangalore at harakali@bloomberg.net.

Last Updated: December 30, 2008 08:37 EST