With Infosys bowing out of the deal, sole bidder HCL has bought 10.43% stake in Axon at 631 pence a share.
Last week, within hours of Infosys Technologies deciding against sweetening its 600-pence offer for Axon, HCL Technologies announced it would implement its own £441 million offer through a ‘Scheme of Arrangement’.This scheme is scheduled to be posted by Axon for its shareholders around October 24 and going by the current timetable, the deal is expected to be completed before year-end. – source
This is a milestone for Indian IT Industry, as many players are trying (for the last few years?) to move up the value chain, but their own efforts/resources haven’t been very successful.
Analysts have argued against HCL’s high bid price (esp. keeping the IT slowdown in context), but only time will tell the real story (after all, Shiv Nadar is known for his gutsy stories!)
What’s your take?