Financial Daily from THE HINDU group of publications
Wednesday, Apr 05, 2006
Financial Daily from THE HINDU group of publications Wednesday, Apr 05, 2006 |
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Outsourcing Info-Tech - Mergers & Acquisitions Corporate - Open Offers MphasiS BFL welcomes EDS offer Our Bureau
MR JERRY RAO
Bangalore April 4 The MphasiS BFL board met on Tuesday and endorsed the EDS bid for acquiring majority stake in the company. EDS has made a conditional open offer to acquire approximately 52 per cent of MphasiS' stake at Rs 204.5 a share. At this price, the deal size works out to $380 million. MphasiS said its board has taken note of the offer from EDS and sees it as a positive endorsement of the company's strengths and welcomes EDS' interests. "The board will support fully whatever action shareholders take with respect to this offer," MphasiS said in a press release. "We are supportive of this transaction and look forward to its successful closure. We are very excited about the opportunities for growth and the potential for enhancing our customer offering," said Mr Jaithirth (Jerry) Rao, Chairman and CEO of MphasiS speaking on behalf of the management. Setting speculation to rest, Mr Rao added: "I intend to live in India and look forward to continuing to run MphasiS." Mr Rao in his personal capacity owns about 3.98 per cent stake in MphasiS, which amounts to 63,85,592 shares as of December 31, 2005. Mr Rao would be richer by Rs 130.58 crore if he tenders all his shares in the open offer.
Following the EDS offer, MphasiS shares closed lower by 1.81 per cent on the BSE at Rs 211.90 after touching an intra-day high of Rs 228.75. Citigroup Global Markets India Pvt Ltd is the manager to the open offer. As per the public announcement to shareholders of MphasiS, April 25 is the last date for a competitive bid. The letter of offer would be dispatched to shareholders by May 12.
Related Stories: More Stories on : Outsourcing | Mergers & Acquisitions | Open Offers
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