Indian PE hopeful of another whopper exit

EDS announces offer for Mphasis, an Indian technology company and gives Barings Private Equity an avenue for exit.
April 05, 2006
America's EDS, USA confirmed its intent on April 4 to acquire Mphasis for a consideration of $380 million. Mphasis is an Indian technology sector company. Analysts who cover EDS were generally positive on the move and the EDS stock price moved up on the announcement. It is speculated that Barings Private Equity Partners India which owns 34.9% of Mphasis will tender its shares in the offer. However, the acquisition price, which is at a discount to the current market price, underscored the challenges faced by private equity firms operating in India in the current stock market rally.

EDS has made a conditional offer to acquire 52% of Mphasis at Rs204.5 $4.58 per share. The...
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