See hope if Vivek Paul becomes Satyam CEO

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See hope if Vivek Paul becomes Satyam CEO

Mr Vivek Paul is a very accomplished professional, who has great regard for his own career and where it is going. If he does accept as a CEO of Satyam, then the next morning one will see a big pop up in the Satyam stock, because then one will have real hope.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Mahindra Satyam BSE | NSE 25/05/12 Are Mutual Funds betting on Mahindra Satyam?

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.

The Foreign Institutional Investors (FIIs) - even Lazard, who was accumulating a few days back, they have been selling down their stock in Satyam . I keep seeing the faces that flash on our channel who might takeover as CEOs of Satyam and that interests me far more than what the board is doing. Because for my money- the ostensible reason is that there is such a lot to do that we need a 10 member board. But there are only two or three key things to do out here and I do not see what Deepak Parekh cannot do that Tarun Das can do.

So, we can spend a lot of time constituting that board. But what you need is an executive CEO and if you told me today that Vivek Paul is accepting that, then I would say that you would look at Satyam in much better light than you are looking at it today.

But you don't know that for sure; Mr. Vivek Paul is a very accomplished professional, who has great regard for his own career and where it is going. I am not so sure that he is going to accept that responsibility. But if he does, make no mistake that next morning you will see a big pop up in the Satyam stock, because then you will have real hope.

I don't think one more LIC inducting or one more ex-Securities and Exchange Board of India (Sebi) inducting into that board, makes any big difference to the fortunes of Satyam shareholders. So, Deepak Parekh is good enough for me that one guy can do it all, he needs to just figure out an executive management, give them directions and you can go three to six to nine to twelve, but I don't think that will make any material difference to the Satyam stock, beyond a small blip here or there, as you saw a few days back.

The big question from a Satyam shareholder's perspective is that do you get encouraged by all this talk of clients saying that we will not move away. Clients are saying that they cannot move away today - because they cannot move away today, they cannot just up and go. It is not like you enter a shop and you walk away, when you don't like something in that shop. They are entrenched and even if they have to exit or get out of Satyam they will do it over a period of time, which is what brings you to the next big question that will Satyam even with an executive management in place from a shareholders perspective die a slow death rather than an immediate death, which is that the business hangs on like Bearing Point we were discussing yesterday. For many quarters and perhaps even years, there is no growth in the business because no new clients come in. Satyam has very little by way of pricing flexibility or pricing call, because it is basically begging its clients to stay on, in that scenario it will take any price that is given to it.

So, where is it going from a shareholders perspective? To that question, I don't have any answer. So, as a business can it float around for much longer than people think, absolutely sure. But you need a strong, real big CEO to takeover to give it any sense that some phoenix can rise from these ashes.