Mergers and Acquistions News
Categories: IT Services & Consulting
October 3rd 2008, 16:39PM
The distinction between mergers and acquisitions is being stressed by Indian company HCL regarding a competition with Infosys on making offers for Axon.
According to the Financial Times, UK consultancy Axon is increasing the pressure on Indian outsourcer Infosys to improve its bid to purchase the company.
Axon has reportedly recommended HCL's higher counter-bid to its shareholders.
Vineet Nayar, chief executive of HCL, told the newspaper that a deal with Axon would be a merger rather than an acquisition.
HCL topped Infosys' 600 pence a share bid for Axon, offering 650 pence instead.
A 60-hour cooling off period has since expired, allowing Axon to recommend HCL's bid to shareholders over Infosys'.
Infosy's and HCL were not available for comment.
Reuters reported that Infosys' shares had dropped after Axon gave its backing to the rival bid.
The prices dropped more than four per cent this morning.
Harit Shah, sector analyst with Angel Broking in Mumbai, said that while HCL appears to be better poised to secure the deal, Infosys could yet place a counter bid.
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