Date:23/11/2008 URL: http://www.thehindu.com/2008/11/23/stories/2008112355091200.htm

Business

Citigroup stake sale in Polaris Software?

Corporate Reporter

First right of refusal rests with Polaris

CHENNAI: The Chennai-based Polaris Software Lab, in which Citigroup of the U.S. has a strategic investment, has stated that Citigroup cannot take decisions to dilute its investment without prior approval from the management of Polaris.

No dialogue

Officials of Polaris have also confirmed that there has been no dialogue on this subject between Citigroup and Polaris.

Reacting to rumours that Citibank was in talks with some buyers to offload its stake in Polaris, company officials said even if Citibank was interested in offloading its stake, Polaris had the first right of refusal. Citigroup including Orbitech, owns 43.33 per cent stake in Polaris, while Arun Jain, Chairman and Managing Director of Polaris and his associates have 28 per cent stake in the company. Citigroup is a major customer of Polaris.