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MphasiS shares surge 6% intraday on acquisition buzz

The stock surged on news report private equity firms Blackstone and Apollo Global are in race with Tech Mahindra to acquire the IT company.

BT Online   New Delhi     Last Updated: February 4, 2016  | 16:51 IST
MphasiS shares surge 6% intraday on acquisition buzz
The stock of MphasiS hit an intraday high of Rs 461.85, up 6.44 per cent on BSE. Photo: Reuters

Shares of MphasiS gained over 6 per cent in trade on Thursday following news report private equity firms Blackstone and Apollo Global are in race with Tech Mahindra to acquire the IT company.

The stock of MphasiS ended 4.36 per cent higher after hitting an intraday high of Rs 461.85, up 6.44 per cent on the Bombay Stock Exchange (BSE).

The news report said the acquisition plans followed as Hewlett Packard Enterprise (HP) might be planning to sell its stake in the subsidiary in an estimated billion-dollar deal.

"Private equity firms Blackstone and Apollo Global Management are in the race to acquire Mphasis after Hewlett Packard Enterprise (HP) revived plans to sell its controlling 60.4% stake in the subsidiary in an estimated billion-dollar deal, according to at least four people with direct knowledge of the matter," said Economic Times report.

"The bulge-bracket buyout funds are believed to be competing with Tech Mahindra, said two of them. They were shortlisted from a group that included global and domestic tech companies and PE funds including TPG and Bain Capital and are expected to begin due diligence soon," the report added.

BSE has sought clarification from MphasiS with reference to the same report.

The reply is awaited.

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