The Hindu Business Line : HCL Tech rises on buzz of an overseas buyout

New Delhi, Sept. 4 The shares of HCL Technologies on Thursday closed 0.82 per cent higher to Rs 251.65, amid market buzz that the company could be eyeing a large overseas acquisition. The shares, which opened at Rs 249.60, touched an intra-day high of Rs 255, before closing at Rs 251.65.

Trading volume have also surged to 5.66 lakh shares against the two-week average volume of 1.21 lakh shares.

Further fuelling the buzz was an agency report that said that the company was in talks with Citibank and ABN Amro among others to raise up to $1 billion to fund acquisitions, and that the firm is eyeing a buy-out in the UK.

While a small section of the broking community said that the shares had jumped on ‘rumours’ that the company may be mulling a large buy-out, with some even going to the extent of linking the buzz to a possible counter-bid for UK-based Axon Group, most analysts and industry observers rubbished such a possibility. An HCL Tech spokesperson said: “The company does not comment on speculation.”

Infy clarification

When contacted, Infosys Technologies – which last week announced it would acquire Axon Group in Rs 3,310 crore all-cash deal – said it was not aware of any possibility of a counter bid.

To a specific query, the Infosys Chief Financial Officer, Mr V. Balakrishnan, said, “No we have not heard anything. We have an offer on the table and are not aware of any counter offer. In a peoples’ business, the management is important in an acquisition. The management (of Axon) has given us a commitment, , so we are well placed… We are certainly on track.”

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