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iGate cancels announcement of deal with Patni

iGate on Sunday said it has called off an announcement of its 'significant corporate development', where it was expected to notify its deal for buying 63 per cent stake in Patni.

twitter-logo PTI   New Delhi     Last Updated: January 3, 2011  | 14:56 IST

iGate on Sunday said it has called off an announcement of its "significant corporate development", where it was expected to notify its deal for buying 63 per cent stake in Patni.

"The significant corporate development that was set to be announced on Monday is off," iGate said in a brief statement on Sunday night without assigning any reasons.

A company official when contacted declined to elaborate on the development.

The iGate-Apax consortium, which is tipped to be the front-runner for acquisition of a majority stake in India's sixth largest IT firm, was expected to make the announcement on Monday.

Patni brothers -- - Narendra Patni, Ashok Patni and Gajendra Patni -- were in talks to sell their 46 per cent stake, while private equity firm General Atlantic was selling its roughly 17 per cent holding in the software services exporter.

Patni's promoters and General Atlantic have made several efforts to sell their stake since 2007, which failed because of disagreements between the brothers and the high valuation expectations of the sellers.

The iGate-Apax consortium, which is tipped to be the front-runner for acquisition of a majority stake in the Indian IT firm, had earlier in the day said it will announce a "significant corporate development" on Monday.

Sources in-the-know said the deal was related to the iGate-Apax consortium's estimated USD 1 billion bid to buy a majority stake in Patni Computer.

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