by Simon Quicke3 October 2008
The battle to acquire SAP consultancy specialist Axon looks
like swinging in HCL Technologies favour at the expense of rival Infosys.
The UK-based consultancy has been courted by both HCL and
Infosys, Indian companies, with HCL out-bidding its rival.
The Axon board has backed the HCL bid pointing out that it
was looking for someone that valued the company more highly.
“Axon and HCL have enjoyed a long standing relationship. The Board is
pleased that HCL has recognised the quality of the Axon business and has
announced its intention to make an offer. The HCL Offer values Axon's existing
issued and to be issued (fully diluted) share capital at approximately £441
million. The value of the HCL Offer is at a premium of 8.3 per cent to the
value of the Infosys Offer,” said a statement.
“Accordingly, the Board has withdrawn its recommendation of the Infosys
Offer and intends unanimously to recommend the HCL Offer when it is made,” it
added.
Infosys made its offer at the tail end of August, which was followed a month
later by rival HCL. The response in the markets to the Axon statement has been
a slip in share price at Infosys.
