LIC still confident about Satyam's potential as a Co

Thomas Mathew of LIC said that the company holds 4.34% in Satyam and said it was a long term player in Satyam. He blames the PWC auditors are for this scam and said that auditing process should be more rigorous. Mathew said the interest of share holders and stake holders should be protected

"We look at the fundamentals of the company and we have a feeling that being a niche player the company still has the potential with a proper management to turn around to give good results in the long term."

Mathew expects a change in management soon. "At an appropriate time we will do our best to support the company so that in the long term it turns around and comes up. We would like to see the company turn around in the long term and look up and address the issues of the employees, stake holders and the share holders."

Puneet Nanda, CIO, ICICI Prudential, said the Satyam fraud is an unprecedented incident in corporate India. "We need to ensure that the interest of all stakeholders is taken care of. The scandal will raise many questions on the role played by the various parties involved."

According to Nanda, as a prudent insurance company we do have a lot of focus on risk management, and ensure adequate diversification. "For us, there is never any concentration risk on any stock whether it is Satyam or anything else. As part of our portfolio, it is relatively insignificant. We are in discussion with other institutional shareholders also. The whole idea is to protect the interest of all our stakeholders and we will evaluate all possible options."

Outlining the options ahead for stakeholders, Nanda said along with other institutional investors we could try to rope in some strategic investor. "One could think of legal action against both company as well as auditors. The other option of course is doing some market trade. We will need to take firm legal opinion on what else can be done."

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