Satyam Computers' controversial decision to buy two group-promoted companies and then reversing the deal within a few hours under pressure from investors may have put them in a soup as the government is understood to have ordered a probe to look into whether the company violated any corporate governance laws while entering into such a deal involving shareholders money.

Satyam Computers had on Tuesday announced that it will acquire two group firms - Maytas properties and Maytas Infra for $1.6 billion (about Rs 8,000 cr) as part of its diversification strategy, a move that sparked a row over alleged violation of corporate governance laws. However, the company had to reverse the decision within a few hours after its scrip nosedived more than 55 per cent on the US bourses. Meanwhile, the beleaguered Satyam Computer Services commenced damage control exercise to win back investor's confidence by informing the Bombay Stock Exchange on Thursday that its board of directors will meet on December 29 to consider the proposal for buyback of the company's shares. Analysts are, however, skeptical about the buyback offer. Ambareesh Baliga, Vice-President of Karvy Broking, Mumbai, described the move as "more of an effort to mend the perception." He said that the damage however had been done.

Chairman B. Ramalinga Raju addressed a mail to his employees on the developments. Mr. Raju said: "We were surprised by strong shareholder response to the proposed acquisition of Maytas. More disturbing to me is the fact that our corporate governance and due diligence have been called into question by some sources. Please be assured that our intent to acquire Maytas was well within the framework."