WiMAX player Telsima sold for $12mn (We were right – it’s a distress sale)

This is what I said earlier regarding Telsima-Harris acquisition: WiMAX player Telsima lapped up? Few questions..

“The entire deal looks like it is a distress sale.  Clearly looks like the team did not get anything out of this. Even investors might have lost some money.  Clearly it is not a deal that makes Telsima proud of it.”

And we stand correct. The deal amount announced is $12mn(in cash).

Distress sale? Well, Investors invested $92mn in Telsima – so straightaway erosion of $80mn.

Raising the same questions that we raised earlier:

• What does this mean of Vinod Dham’s companies.  Most of them are floundering.   Not a single success story so far. Even his association with Satyam is not a great thing to talk about.
• Is it a good thing for WiMAX or Wireless Infrastructure companies?  Would new investors invest in such big stories anymore? Clearly looks like this will send shivers down their spine.

What’s your opinion?