Angel Broking has maintained its buy rating on Satyam Computer Services in its December 30, 2008 research report. "Satyam Computer Services has suffered another blow with three top independent directors quitting. Mr Vinod Dham, Dr Krishna G. Palepu and Prof. Mendu Rammohan Rao have resigned from the Satyam Board, under pressure from several quarters on corporate governance issues. The resignations come on the heels of Dr Mangalam Srinivasan, the longest serving Independent Director quitting, owning moral responsibility for not casting a dissent vote against the eventually-aborted US $1.6bn deal to buy Maytas firms. Effectively, the nine-member Board is now reduced to five members – three whole-time directors and two independent directors."

"Mr Ramalinga Raju, Chairman of Satyam, had informed BSE that the promoter’s stake (8.65%) might have been reduced as their lenders could have sold the shares pledged with them. In all likelihood, the upcoming board meet on January 10 could result in a change of guard at the leadership. There is also considerable talk about possible suitors who could lead a change in the management. The names of IBM, Reliance ADAG, an Indian IT major and private equity players focused on IT were being mentioned by sources watching the developments. FIIs, which hold 47% stake are likely to exert pressure to induct their own people on the board when it is revamped. We maintain a Buy on the stock and believe any positive development in the meeting on January 10 could provide an immediate upside trigger for the stock,' says Angel's research report.

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