Software firm MphasiS to meet over EDS bid
EDS has offered Rs 204.5 a share as part of an effort to buy a 52 per cent stake in the company listed.india Updated: Apr 04, 2006 18:21 IST
The board of Indian software firm MphasiS will meet on Tuesday to consider a $380 million bid for a majority stake from US technology giant EDS, a company spokesman said.
MphasiS spokesman Vivek Dayal termed the offer "positive" but said the board would discuss it further Tuesday.
"Let us see the offer document first," the spokesman said.
EDS has offered Rs 204.5 ($4.58) a share as part of an effort to buy a 52 per cent stake in the company.
On Tuesday morning trade on the Mumbai stock exchange, MphasiS shares were down Rs 3.80 or 1.79 per cent at 212.
Bangalore-based MphasiS runs call centres and has more than 12,000 employees, including about 11,000 in India, focused on the transport, financial services, technology and healthcare sectors.
"This offer is complementary to our overall strategy to enhance EDS's presence and capabilities in India," said EDS chairman and chief executive Mike Jordan in a statement.
The move would boost EDS's presence in India where it can take advantage of the pool of skilled labour and lower employment costs.
Indian software and service export revenues are forecast to climb to 23.4 billion dollars for the year to March 2006 from 17.7 billion dollars in the previous 12 months, according to an industry report in February.
The National Association of Software and Services Companies (NASSCOM) tipped India's software industry to reach a target of 60 billion dollars in sales by 2010.