Date:14/05/2008 URL: http://www.thehindu.com/2008/05/14/stories/2008051456141600.htm

Business

Boon for Mphasis shareholders

MUMBAI: Shareholders of domestic IT firm Mphasis could soon see another open offer being made to them with its U.S.-based parent company EDS on Tuesday emerging as takeover target of global technology major Hewlett-Packard.

EDS held 60.9 per cent stake in Mphasis as on March 31, 2008, and this shareholding would go to HP after the deal.

According to SEBI guidelines, it is mandatory for a firm acquiring over 15 per cent stake in any company to make an open offer to public shareholders of that company for an additional 20 per cent stake.

Shares of Mphasis on Tuesday surged by 10 per cent and settled the day at Rs. 242.45 on the Bombay Stock Exchange. The scrip recorded intra-day high of Rs. 256 and over 11.09 lakh shares were traded on the bourse. In April 2006, EDS ha announced an open offer to acquire a majority 52 per cent in Mphasis for about $380 million. This offer closed in June. In October, EDS made another open offer to raise its stake to 70.4 per cent. — PTI