Satyam Computer Services seems to be in deeper trouble with angry institutional investors moving rivals like IBM, Hewlett-Packard and Oracle to sell off their stakes in scandal-struck Satyam.
With more allegations of wrongdoing hammering Satyam, shareholders are believed to be trying to arrange a sale of the company.
Private capital firms, including Aberdeen Asset Management, Fidelity and ICICI Prudential hold roughly 60 per cent of Satyam, against a mere 8.3 per cent stake held by the family of the company's founder and chairman, Ramalinga Raju.
The woes of Satyam Computer services seem unending as more and bad news continue to hit the company.
Coming on top of Satyam's attempt to buy out two construction companies owned by its founder's kin, the charges of bribery levelled by the World Bank against Satyam have only helped to reinforce investors' desire to part ways with Satyam.
The market is now eagerly awaiting the outcome of a Satyam board meeting set for 29 December.
The meeting comes after Satyam's independent director Rammohan Rao quit the Satyam board after all the drama. The Left parties have now sought the removal of Rammohan Rao from all government positions.
The World Bank on Tuesday said it had barred Satyam from bidding for any contracts with the bank for the next eight years after the bank found that the Indian IT major had provided "improper benefits to bank staff and for failing to maintain documentation to support fees charged for its subcontractors."
Satyam has denied any wrongdoing, and has demanded an apology from the Washington-based lender. Satyam, according to reports, is planning to sue the World Bank for defaming the company and causing it monetary losses.
The Satyam management is also facing the heat of some funds for trying to use the company's cash reserves to buy Maytas Infra and Maytas Properties, which are run by relatives of Raju.
The Satyam founder, however, retracted his move following fierce opposition from investor.
The decision of Satyam Computer Services' management to acquire Maytas Properties and Maytas Infra for around $1.6 billion was also not unanimous as was claimed by the company's top brass.
During a conference call addressed by Satyam chairman B Ramalinga Raju, the company informed the stakeholders about the decision, which Raju and Satyam CFO Srinivas Vadlamani insisted was unanimous.
But the resignation of Mohandas Rao proves otherwise. Another independent director TR Prasad recently said the management was given options to evaluate before formalising the decision to buy the family-run companies.
Mangalam Srinivasan, another independent director, said she had not cast her "dissenting" vote against the acquisition. She had sent across her resignation to Raju on Thursday and the company officials confirmed that the director had put in her papers.
''I am sending this letter to let you know that while I raised many of the issues related to the procedures and had expressed my reservations during the Satyam board deliberations, I had not cast a dissenting vote against the acquisition of Maytas, for which I take the moral responsibility,'' she said in her resignation letter.
Satyam shares which fell 55 per cent on the day of the merger plan announcement, is down 40 per cent since the buy-out fiasco.