Thursday, March 25, 2004
News Corp's decision to offload its 55.4% stake in Delhi-based
Hughes Software Systems has evinced interest from IT majors
like Wipro and Infosys. DSP Merrill Lynch, the merchant banker
appointed by News Corp, is
said to have received around six bids - largely from international
investors.
HSS' management is also in the process of putting together
a bid and is seeking the support of private equity funds CDC
Partners and Warburg Pincus. The management has sought the
services of Kotak Capital to structure the bid. The bid would
also include exercising the employee stock options in order
to raise the employees' stake.
On the other hand, Wipro is plans to put in a stock bid instead
of a cash bid. The company's telecom and networking arm is
a rival to HSS.
News Corp acquired the 55.4% stake in HSS in April last year,
following the acquisition of its parent Hughes Corp. The latter's
stake in Hughes Software was held directly and through its
Mauritius-based investment company and Hughes Networks.
HSS has a market capitalisation of Rs 1,825 crore, based
on Wednesday's closing price, of which 55% works out to Rs
975 crore.
Last updated :
March 26, 2004
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