From Satyam to Nestle, we have witnessed a black of list to top corporates fizzling at the height of their success. Nagpur Today takes a low down
Within six months of chairman Ramalinga Raju admitting a Rs 7,000 cr scam, the company’s share price plunged from almost Rs 540 to Rs 58. For Tech Mahindra, who took over the company, it was a juicy half volley of a price.
From Satyam to Lehman Brothers, five famous corporate collapses
Houston had a problem. It was a power company called Enron. The machinations of people like CEO Jeffrey Skilling and CFO Andrew Fastow raised shareholders’ suspicions. A $40 billion suit followed, resulting in bankruptcy for the company and jail terms for some of the perpetrators.
Greed and selfish interests in issuing subprime mortgages clean bowled the once mighty institution. CEO Richard Fuld, nicknamed ‘Gorilla’, took a major portion of the blame for Lehman’s fall.
Once the world leader of the automobile business, GM went broke in 2009. Among the reasons for their plight was a lack of focus caused by its varied categories of vehicles and a large bill for the healthcare of its employees. Fortunately, a bailout followed.
Their instant noodles were forced off the shelves after reports that they contained excessive lead. The company’s share price dropped nearly 15 per cent. All is well now. And it is the Indian batsmen that need to show some noodle type stickiness at the crease.