TCS, Infy may bid for British IT firm
British financial software company Misys said it had received a bid approach, sending its shares up more than 8% on Tuesday and analysts said that TCS and Infosys could be among the probable suitors.india Updated: Jun 22, 2011 01:45 IST
British financial software company Misys said it had received a bid approach, sending its shares up more than 8% on Tuesday and analysts said that TCS and Infosys could be among the probable suitors.
Misys shares were up 8.5% to 417.2 pence, valuing the company at around £1.4 billion ($2.3 billion).
"The board of Misys Plc... confirms that it has received a preliminary approach that may or may not lead to an offer being made for the company," the company said in a statement on Tuesday.
The company is taking the approach seriously and is in talks with one bidder over sale of the whole company, said a source familiar with the matter.Jefferies said the bidder could be from the US or India, with fair offer exceeding £5 per share.
"US heavyweights such as FIS and Sungard will be looking for an opportunity to internationalise their footprint, while Indian providers such as Infosys and TCS will be looking for more onshore presence and brand," said Jefferies analyst Milan Radia.
Misys shares have risen sharply from from around 312 pence in early May as market speculation of bid interest swirled around the stock.
Misys — which competes with companies such as Temenos, Fidelity National Information services , Fiserv and SunGard — clients’ include all of the world’s top 50 banks.