Why Satyam Backpedaled So Fast

The Indian tech giant hastily scrapped a $1.6 billion deal to buy two construction companies after investors revolted

Late in the day on Dec. 16, Satyam Computer Services, the fourth-largest IT-services enterprise in India, announced the $1.6 billion acquisition of two construction companies, Maytas Infra and Maytas Properties. Ramalinga Raju, the founder and chairman of Hyderabad's Satyam, called the purchase of the companies "a good diversification strategy" and said Satyam had no need to seek approval from shareholders.

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