Battle for Axon: It’s HCL vs Infosys
Indian firms HCL Technologies and Infosys are locked in a battle to buy British tech firm Axon Group Plc.business Updated: Sep 27, 2008 00:07 IST
Indian firms HCL Technologies and Infosys are locked in a battle to buy British tech firm Axon Group Plc. HCL on Friday offered to buy Axon at around £441.1 million ($810.8 million or Rs 3,720 crore), that betters Infosys’s £400 million ( $736 million or Rs 3,380 crore) bid made in August.
“We see Axon as a transformational opportunity for HCL,” the company’s chief executive Vineet Nayar said.
HCL, which earns around 29 per cent of its revenues from Europe, has offered 650 pence in cash for each Axon share. The offer is 8.3 per cent higher than Infosys’s 600 pence per share bid made on August 25.
Axon provides software application protocol services that optimises and integrates information flow across business processes.
Axon shares rose 6.3 per cent to 674 pence per share after HCL’s offer.
Infosys did not make it clear whether it would make a counter-offer.
“Infosys notes the announcement made earlier today (Friday) by HCL Technologies. Infosys is considering its position and urges Axon Shareholders to take no action at this time,” it said in a statement.
HCL shares closed at Rs 212.95, down by over 5 per cent on the BSE on Friday, while Infosys shares closed at Rs 1,447, down 3.8 per cent.