MphasiS scrip up 6% on EDS offer hike buzz

The shares of MphasiS BFL gained over 6 per cent on the Bombay Stock Exchange (BSE) on market speculations that American IT gaint Electronic Data System Corporation was planning to increase its acquisition price of Indian IT solutions and BPO services provider. Speculation was rife that EDS would offer a higher price of Rs 325-350 per share, a TV channel reported today.

The offer price is a premium of 30 per cent to the 26-week average price of MphasiS on the BSE. Earlier, Baring India had offloaded its entire 34.73 per cent stake, while promoter Jerry Rao has offloaded 2.8 per cent from his 3.97 per cent stake.

The new offer is in comparison with the earlier open offer of $380 million at Rs 204.50 per share. EDS was looking at acquiring 20 per cent stake in the Bangalore-based company and had announced an open offer, which was met with a "weak response".

The offer was open between November 27 and December 18.

When contacted, MphaSis officials declined to comment stating that these were "speculations", which the company was not aware of.

Industry analysts are of the opinion that EDS will look at hiking the open offer price much above the current market price.

They also referred to the revising of offer price by Oracle for its acquisition of i-flex. After a lukewarm response, Oracle revised its offer price to Rs 2,100 from Rs 1,475 a share.

MphasiS BFL shares rose 6.16 per cent to close at Rs 303.45 on Friday on the BSE compared with Rs 285.85 posted on Thursday.