Satyam has called off the Maytas deal in difference to views expressed by investors. The IT major was surprised by market reaction even though it was positive about the merits of the acquisition.
Satyam ADR fell 55% to USD 5.7 yesterday, and recovered 56% to USD 8.9 in afterhours trading.
On Tuesday, Satyam had announced it will acquire 51% in Maytas Infra and 100% in Maytas Properties. The company had said the acquisition of Maytas' two companies would cost it USD 1.6 billion.
Is there anything left for traders on the table?
Satyam ADR are still down 25% from their closing price which was ~$12 before the deal was made. In Indian markets too one can expect 15-20% fall in Satyam share price, Opportunity to make money in buying Satyam Call Option has come down, it might not be advisable now to go for its Call option. Look how the scenarios changes overnight!!!
- Sandeep Jain, Associate, HBJ Capital
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