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Our Bureau

Chennai , Aug. 22

THE US-based Fidelity National Financial Inc (FNF) will pay a lower price for a 29 per cent stake in technology company Covansys Corporation.

It will now pay $121 million against the previously agreed price of $131 million of stock purchase agreements with Covansys and its founder and Co-Chairman of the board, Mr Rajendra Vattikuti.

Covansys has a strong offshore base in India with over 3,000 employees working in Chennai, Mumbai and Bangalore.

FNF, a Fortune 500 provider of products and outsourced services and solutions to financial institutions and the real estate industry, said that the price cut to $11 a share was due to Covansys' delayed filing of its first-quarter 2004 financial statement. The deal is subject to Covansys shareholder approval and other closing conditions, and is expected to close on September 15, says the information on FNF and Covansys Web sites.

Under the new agreement, the FNF's Fidelity Information Services (FIS) unit will buy 8.7 million common shares from Covansys and 2.3 million common shares from Mr Vattikuti for $11 a share.

The FIS will also receive four groups of warrants, each for one million common shares, with strike prices between $15 and $24 per share.

More Stories on : Mergers & Acquisitions | Software | Foreign Institutional Investors

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