Thursday 2 October 2008

Axon prefers HCL Tech’s offer to Infosys’

In a move that places HCL Technologies ahead in the race for the acquisition of the Axon Group, the Board of the UK company on Thursday dropped its recommendation of Infosys’ 600 pence a share offer, and said it would unanimously recommend HCL’s 650 pence a share bid to its shareholders.

This assumes significance as the recommendation by the Axon board establishes HCL’s offer as a ‘friendly bid’ and not a ‘hostile’ takeover, sources said. Moreover, while the shareholders in any case would have opted for a higher bid, the recommendation also means that HCL now has the option to convert its offer into a scheme of arrangement.

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