Anand Rathi Securities has recommended a sell rating on Satyam Computer Services with a target price of Rs 150 in its December 31, 2008 research report. "Besides a share buy-back, Satyam Computers will consider: 1) strengthening the governance structure, including the size of the board and altering its composition; 2) strategic options to enhance shareholder value 3) addressing issues arising from a possible dilution of the promoter’s stake."
"There is a high probability of management change since the promoter stake (already low at 8.6% in Sep ’08) has been reduced in the last week. Four independent directors have quit the board after investors questioned the propriety of using company’s cash to buy two firms linked to the promoter. Sell, target of Rs 150," says Anand Rathi's research report.
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