While Infosys Technologies is still deciding on a counter offer for UK-based consulting firm Axon, the latters board has dropped its recommendation of a take over bid from India’s second largest IT firm in favour of a higher offer made by HCL Technologies.
Axon in its statement to the London Stock Exchange said, “The Board is pleased that HCL has recognised the quality of the Axon business and has announced its intention to make an offer. Accordingly, the Board has withdrawn its recommendation of the Infosys Offer and intends unanimously to recommend the HCL Offer when it is made.”
Axon also said that it gave Infosys a period of 60 hours to mull over the bid made by HCL. During the 60 hour period Axon is prevented from varying or amending its recommendation has now elapsed.
Infosys in August had announced a cash offer of 600 pence per share of Axon Group Plc or GBP407 million. But in September HCL Tech—fifth largest IT services firm in India—rivaled the offer for 650 pence, 8.3 per cent higher than Infosys bid. Valuing Axon for GBP 441 million (over $800 million).