NTT Data in talks to buy stake in Patni
Friday, 7 May 2010
MUMBAI, May 6 (Reuters): Japan's NTT Data Corp is in talks to buy a majority holding in Indian software services firm Patni Computer Systems for up to $1 billion, the Economic Times reported Thursday.
However, a source with direct knowledge of the situation told the reporter that two other suitors, including Japan's Fujitsu, are also looking at the stake. "The talks are on. But there are no exclusive talks to any of them at this point in time. Patni is still talking to various suitors and a deal is still sometime away," the source said.
L&T Infotech, the IT arm of engineering and construction firm Larsen and Toubro, is the other contender for picking the stake in Patni, said the source who did not wish to be identified.
The founding Patni brothers aim to sell a large part of their 46.5 per cent holding, while private equity firm General Atlantic, will offer its 17.7 per cent stake, the Economic Times said, quoting unnamed people with knowledge of the matter. The three Patni brothers are expected to retain a combined 10 per cent stake, it said.
"The talks are progressing well and are at a fairly advanced stage," the newspaper said, quoting an anonymous investment banker. "The way the deal is envisaged currently, General Atlantic will sell its entire stake in Patni Computer, but the brothers could continue to individually retain a small or token per centage."
NTT is likely to pay between Rs 650-700 ($14.5 to $15.6) a share for 51 per cent of the company, the paper said, citing another person with knowledge of the matter.
However, a source with direct knowledge of the situation told the reporter that two other suitors, including Japan's Fujitsu, are also looking at the stake. "The talks are on. But there are no exclusive talks to any of them at this point in time. Patni is still talking to various suitors and a deal is still sometime away," the source said.
L&T Infotech, the IT arm of engineering and construction firm Larsen and Toubro, is the other contender for picking the stake in Patni, said the source who did not wish to be identified.
The founding Patni brothers aim to sell a large part of their 46.5 per cent holding, while private equity firm General Atlantic, will offer its 17.7 per cent stake, the Economic Times said, quoting unnamed people with knowledge of the matter. The three Patni brothers are expected to retain a combined 10 per cent stake, it said.
"The talks are progressing well and are at a fairly advanced stage," the newspaper said, quoting an anonymous investment banker. "The way the deal is envisaged currently, General Atlantic will sell its entire stake in Patni Computer, but the brothers could continue to individually retain a small or token per centage."
NTT is likely to pay between Rs 650-700 ($14.5 to $15.6) a share for 51 per cent of the company, the paper said, citing another person with knowledge of the matter.