Patni deal likely by Xmas weekend
TIMES NEWS NETWORK Mumbai: The billion-dollar plus deal to buy out India’s seventh-largest IT services firm Patni Computer Systems may be sealed on the Christmas weekend as discussions between the current promoter shareholders and the two bidders were delicately poised on Thursday evening, sources directly familiar with the process said. The two offers, which were made on Tuesday and Wednesday this week, could range between Rs 500-550 per share, pegging the company’s enterprise valuation at over $1.6 billion. Nasdaq-listed iGate Corporation, backed by Apax Partners, were the first ones for daylong discussions with investment bankers mandated to sell around 63% shareholding of the three Patni brothers as well as General Atlantic Partners. The second bidder, a private equity consortium of Carlyle Group and Advent International along with technology entrepreneur Vivek Paul, started their final round of negotiations later in the evening. Standard Chartered is advising iGate and Apax while Citi is the banker for the Carlyle-led consortium. A decision on the preferred suitor is expected by this weekend, and an initial announcement could happen as early as on next Monday, sources added. Patni Computer Systems closed at Rs 481 at BSE, marginally up on Thursday. The firm’s market cap stood at Rs 6,303 crore, or at round $1.4 billion, based on Thursday’s stock price. Sources said the bids may have come at 10-15% premium over the market valuation. The successful bidder may have a chance to mop up around 80% stake including the mandatory open offer. Even as the bidders were called in for final talks, rumours started floating that some members of the promoter group were not satisfied with the bid valuations. But sources said there were “no deal-breakers” in sight. -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
