"Talks are on, and the deal is expected to be concluded in the near future",sources said under conditions of anonymity.

On the Bombay Stock Exchange, the DSQ Software scrip closed at Rs 1,173 onTuesday after touching a high of Rs 1,223. Volumes of 7.86 lakh shares weretraded on the BSE. On Monday, the scrip had closed at Rs 1,198 registeringvolumes of 12.38 lakh shares.

Both BancAmerica Equity Partners and CSFB had jointly picked up a 33 percent stake in DSQ Software at Rs 275 a share (a premium of Rs 265 for a Rs10 share): one crore equity shares of Rs 10 each were privately placed. Thedeal reduced the stake of Dinesh Dalmia -- plus his partners andassociates -- drop to 22 per cent from 40 per cent.

Cisco is the world's largest networking company and third largest in termsof market capitalisation. It is often said that the Internet runs on Ciscosystems to show the use of its networking systems and solutions across theglobe. Cisco has near monopoly in the routers segment, the intelligentnetworking and routing devices, which help access the World Wide Web throughthe Internet Protocol (IP). DSQ Software's deal with BancAmerica EquityPartners was concluded after going through quite a many hiccups.

These ranged from suits filed by creditors like Credit Agricole Indozuez;non-availability of shares for private placement; refusal by the auditors tosign the balance-sheet; and later day concerns voiced by ICICI Ltd toForeign Investment Promotion Board that its interest has to be safeguardedin the case of any change in DSQ's Software's equity holding profile.

On Monday, Dinesh Dalmia stepped down as managing director of DSQ Software,and was replaced by Arun Tolani. Media reports quoted Dalmia as staying thatRs 70 crore of debt to the creditors had already been cleared and that heexpected the residual portion of Rs 120 crore also to be settled shortly.

DSQ Software posted a net-profit of Rs 14.63 crore for the quarter endedDecember 31 on a turnover of Rs 72.17 crore. Expenditure was up marginallyto Rs 44.91 crore. Gross profit after interest, but before depreciationstood at Rs 22.75 crore. The company's board met last Saturday to issueanother 3 million shares to strategic investors.