Patni stake sale called off

Mumbai-based IT company Patni Computer Systems' stake sale has been called off. "All discussions on the stake sale have been terminated," said a source close to the development. This ends the uncertainity over the issue, which was stagnating for around six months.

The deal had reached a stalemate since there was no clear consensus on who would exert management control. This time around, the deal has been called of as the brothers -- Ashok and Gajendra Patni -- were asking for around Rs 700 per share. At the current share price of Rs 428.90, this would mean shelling out a premium of a little over Rs 270 per share. The brothers hold nearly 29% of which they were ready to sell 12%.

While private equity player Carlyle Group had walked out of the deal, PE players Apax and Texas Pacific Group had joined hands for the dea. A source close to the development said that these two have also dropped out of the race after a meeting yesterday night.

Narendra Patni will continue to be the CEO of the company. The source said that if any further discussion takes place, it will happen only when his tenure expires by December 2008.