Hold on to cash and don’t jump in to help family-owned firms.
Satyam Computer Services got this stern message this week when it was forced to dump a plan to spend $1.6 billion to buy two builders, part-owned by Satyam’s chairman and other insiders.
The move sent shockwaves across a country known for its trailblazing software industry, and triggered a cloud over corporate governance in India.
“All in the Family,” screamed the Economic Times on its front page, highlighting a furious reaction from the investment community.
Satyam’s move to buy control of Maytas Properties and Maytas Infrastructure was killed just 12 hours after it was announced.