| Electronic Data Systems Corp (EDS), the $19.8-billion information technology services company, today said it would make an offer to acquire 52 per cent in Indian software services provider MphasiS BFL Ltd, months after its negotiations to acquire Barings India Investments' 32 per cent stake in the company fell through. |
| The Texas-based company will make a conditional open offer to acquire 83 million MphasiS shares at Rs 204.50 (approximately $4.58) apiece amounting to a total purchase price of Rs 1,672 crore ($380 million), pursuant to Indian securities regulations. |
| The price represents a premium of approximately 30 per cent to the 26-week average price of the MphasiS scrip on the stock market. |
| An MphasiS spokesperson confirmed that the company was scheduling a board meeting tomorrow to discuss the offer to be made by EDS. |
| "The management's response to the offer is positive," the spokesperson confirmed. |
| According to a statement from EDS, the offer will be contingent upon the company acquiring 83 million shares. If these shares are not offered, EDS will not accept any share tendered. |
| "This offer is complementary to our overall strategy to enhance EDS' presence and capabilities in India," said Mike Jordan, EDS chairman and chief executive officer, in the statement. |
| MphasiS had reported a top line of around Rs 1,554 crore on a net of Rs 113 crore for the nine-month period ended December 31, 2005. It has more than 12,000 employees on its rolls, including about 11,000 in India. |
| MphasiS serves clients in multiple industries, including financial services, transportation, technology and health care. EDS currently has 3,000 people in India (Chennai and Pune) and is expected to scale staff strength up to 5,500-6,000 in the near future. |
| The company recently announced that it was lining up $35 million for its expansion in India. |
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