Following an investor outcry, Satyam Computer Services Ltd. late Tuesday dropped a $1.6 billion plan to buy stakes in a pair of infrastructure companies in which the Indian software company 's founders held stakes. The decision came just half a day after Satyam said its board had approved the plan to buy 51% of Maytas Infra Ltd. and all of Mytas Properties Ltd. The reversal was forced after Satyam's American depository receipts fell $6.85, or 55%, to $5.70 in 4 p.m. New York Stock Exchange composite trading. The ADRs rebounded 56% to $8.89 in after-hours trading. Analysts criticized the proposed buyout because of the construction companies' lack of relevance to Satyam's core business, and because Satyam's founders, led by Chairman B. Ramalinga Raju, hold stakes of 36% in Maytas Infra and 35% in Maytas Properties. […]

India’s fourth-largest software company, Satyam Computer Services on Tuesday announced acquisition of 100% stake in Maytas Properties for $1.3 billion and 51% stake in Maytas Infra for $0.3 billion. The company’s decision, which comes as a surprise is being termed as a move to diversify its portfolio in non-IT sectors, which has been facing the heat of the global meltdown. Maytas, which is the reverse word for Satyam is promoted by two sons of B Ramalinga Raju, chairman and founder of Satyam Computer Service. The decision has been approved by the company’s board of directors. Analysts and institutional investors do not seem happy with this move and some are likely to oppose it. […]