The Hindu Business Line : MphasiS soars 10% amid HP-EDS acquisition talk

MUMBAI: Shares of software and outsourcing services firm MphasiS on Tuesday surged nearly 10 per cent on the weak Bombay Stock Exchange amid reports that its parent firm, Electronic Data Systems (EDS), is being acquired by leading technology firm Hewlett -Packard.

Hewlett-Packard on Tuesday said it would acquire technology services firm EDS for an estimated $13.9 billion. Scrip of MphasiS opened firm on the BSE at Rs 227 and then rallied ahead to witness an intra-day high of Rs 256.

The surge in MphasiS scrip was despite the fact that the BSE benchmark index ended the day with a fall of 108 points on heavy selling in heavy weights led by refinery stocks.

On the volume front, as many as 11,09,060 shares exchanged hands and the scrip settled for the day with a gain of Rs 21.80 or 9.88 per cent on BSE. Both companies - EDS and HP - have signed a definitive agreement under which HP would buy EDS at a price of $25 per share, or an enterprise value of about $13.9 billion.

The transaction is expected to close in the second half of 2008, HP said in a statement today. According to the statement, HP intends to establish a new business group, to be branded EDS - an HP company, which would be headquartered at EDS's existing ex ecutive offices in Plano, Texas.

Post deal, HP plans that EDS would continue to be led by its EDS Chairman, President and Chief Executive Officer, Mr Ronald A Rittenmeyer. - PTI

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