Bugged

BANGALORE, December 29, 2008 (AFP) – Three directors of Indian software firm Satyam have resigned, the company announced Monday as it sought to restore investor confidence in the wake of an aborted 1.6 billion dollar acquisition.

Satyam Computer Services Ltd is a leading software consultancy, system integration and outsourcing firm with clients across 65 countries. Krishna G. Palepu and Vinod Dham “cease to be directors with effect from December 28”, the Hyderabad-based company said in a statement.

M. Rammohan Rao resigned later Monday, becoming the fourth out of 10 board members to quit.

Another director had resigned from the board last week, admitting moral responsibility for not opposing the failed acquisition of two infrastructure firms Maytas Properties and Maytas Infrastructure promoted by the founder’s family.

Last week, the World Bank barred Satyam, India’s fourth biggest software exporter, from doing business with it for eight years over “improper benefits” paid to staff.

Satyam had announced the 1.6-billion-dollar buyout of the infrastructure firms earlier this month, but abruptly reversed its decision saying investors had rejected the plan.