Experts decry Satyam-Maytas deal; call it unethical

On Tuesday, Satyam announced its decision to pick up 51% in Maytas Infrastructure and 100% in Maytas Properties. However, as soon as the USD 1.6-billion deal was announced, it met with stiff market resistance. Investors were angry on the company’s acquisition of the infrastructure company — especially when the realty business is highly cash-consuming now. The Satyam ADR fell by as much as 55% on news of the acquisition.Institutions hold over 50% in the IT major. Templeton, an institutional shareholder, said it would go to any length to stop the deal. In the face of rising investor discontent, Satyam called off the deal.