Infosys Technologies on Friday said it would not increase the price of its original acquisition bid of 600 pence a share for the UK-based consulting firm Axon. The company said in a statement, ?After careful consideration, the board of Infosys has concluded that it will not increase the price of its original offer dated August 25, 2008.?
Infosys? bid of 407.1 million pound to acquire the SAP-specialist company Axon was countered on September 26 by HCL Technologies with a 650 pence a share, 441 million pound offer. With Infosys not offering a response – bid, Axon?s board had subsequently recommended the higher HCL bid as better.
Infosys? CEO S Gopalakrishnan said, ?We had done duediligence before we made the (original) bid. We see no reason to increase the price that we offered.?
The company?s CFO V Balakrishnan said that it was up to the board of Axon to decide on the deal that suited it best. After making a 441.1 million pound counter offer for Axon Plc on September 26, HCL on Friday, decided to implement the offer by way of a scheme of arrangement. HCL has also received consent of the UK Takeover Panel and Axon for it.
Infosys said that the decision to not increase its bid- price would have no material impact on its future strategic plans.
Gopalakrishnan said, ?Infosys still looks at acquisitions as a strategic way in which we can expand a particular market and grow a service.?