HCL Technologies, as was rumoured, made its move to acquire Axon Global, spoiling Infosys’ party mood. The Delhi-based IT company has launched a counter-bid for Axon Global, which will make Axon shareholders happy, but also ups the acquisition cost for Infosys. HCL’s initial bid of 650 pence a share, through its UK-subsidiary HCL EAS, is just an invitation to start a bidding war. With just an 8.3% premium to Infy’s offer price, Infosys will most certainly make a counter-bid.
Companies
Recent Posts
Infosys’ Axon acquisition: boosting its consulting business or simply buying growth?
|
Finally, Infosys Technologies did it. For years, one has got tired of hearing that the company was waiting for the right acquisition at the right price. This despite having oodles of cash on its balance sheet that lowered its return on capital. It did make some small acquisitions but nothing which made analysts furiously rework their estimates.
This will be a large acquisition by its standard, it will pay about Rs 3,300 crore to acquire UK’s Axon Group, a business transformation service provider.
First impression
Filed under: Companies, Top News, Axon, Infosys, M&A
Novelis to restate financials, Hindalco’s results may get affected too
|
Restatement of accounts is quite uncommon in India. Even if Indian companies discover bloopers they are either rectified prospectively in the P&L or retrospective effect is given through the balance sheet. The first practice will reflect in future financial statements and the second will not reflect in the profit and loss account, thereby not affecting the profit for the year. US GAAP in contrast requires companies to restate their financial statements.
Filed under: Companies, News Analysis, Hindalco, M&A, Novelis, Restatement
Tax on luxury cars will help no one, not even inflation
|
Last week, inflation touched 8.75% confirming that inflation has perhaps crossed 9% and if you factor in the June 4 petroleum product price hikes, it will cross 10%. Everyone seems to be predicting that by November’08, the base effect will kick in and reported inflation will come down. Still, if the direction in which prices are moving does not change, it does not bode well.
Filed under: Companies, Top News, Cars, Tax
HP-EDS deal: are Mphasis shareholders jumping the gun?
|
Update on May 22: EDS has sent a clarificatory letter to the stock exchanges stating that it is not required to make an open offer, under Sebi’s existing regulations. That will disappoint retail shareholders who were hoping for a windfall, though instutional shareholders would have realised that an open offer was not on the cards. Read the text of the letter here.
Filed under: Companies, Top News, Companies International, EDS, HP, M&A, Mphasis, Open Offer
Is Bolix a good buy for Berger Paints?
|
Berger Paints will add about Rs 180 crore or about 13% to its existing turnover after the acquisition of Polish company Bolix. Berger bought out the company on April 28, 2008 giving an exit to private equity company, Advent International.
Bolix is in the exterior building materials business; it makes external insulation finishing systems (EIFS). It was acquired by Advent in 2003 when it had a turnover of $26mn, which has grown at a CAGR of 15% to $45.5mn in 2007. That is a smart growth rate, indicative of the demand for this business.
Filed under: Companies, Paints, Top News, Berger, Bolix, Companies International, M&A
Reliance Power’s proposed bonus issue tries to mend fences with hurt investors
|
Reliance Power is attempting to win over dejected investors, who suffered losses after investing in the company’s public offer IPO, one which attracted unprecedented subscriptions. The company’s Board will meet next Sunday to decide on a proposal to issue bonus shares or otherwise compensate shareholders who applied in the IPO.
Filed under: Companies, News Analysis, Bonus, Companies Disclosures, IPO, Markets Stock Markets, Reliance Power
Cipla gets approval for generic pamidronate disodium
|
The FDA has given approval to Cipla to sell generic pamidronate disodium, a drug used to treat high blood calcium levels caused by cancer, protecting from bone problems caused by cancer and Paget’s disease of the bone. The drug was sold under the brand Aredia belonging to Novartis but is now off patent. Cipla has got approvals for the 30mg, 60mg and 90mg injection dosages of this drug. There are many generic players in the market; in early November Strides Akorn LLC (a joint venture between Akorn and Strides Arcolabs) too had got FDA approval for this drug. Continue Reading →
Filed under: Companies, Quick News, ANDA, FDA, Generic
Deccan Aviation and Kingfisher Airlines to combine?
|
The Deccan Aviation Board will meet today to discuss consultant Accenture’s recommendations on a restructuring proposal. The move will seek to formalize the integration of Kingfisher Airlines and Deccan Aviation. In both companies, the Vijay Mallya promoted UB Holdings owns a majority stake.
Filed under: Companies, Top News, Deccan Aviation, Kingfisher Airlines
McKinsey Survey on Shopping habits in India, China and Brazil
|
Indians like to shop with their family. Well, anyone could tell you that, you don’t need McKinsey & Co for this. The consultancy’s recent report on how people shop for clothes in India, Brazil, and China (they have surveyed Russia too, but not in particular for apparel) says just that. Research firms like Technopak have done more in-depth and better studies in this segment.