EDS’ $380 m offer for 52% in MphasiS

4th April 2006: The world’s second largest software services company, Texas-based EDS, will make a conditional open offer to acquire 52% stake-or none-in MphasiS BFL at Rs 204.5 per share in cash. The offer for 83 million shares will be worth $380 million (Rs 1,710 crore).

MphasiS board will meet on Tuesday to consider the offer. Baring India Investment, which holds the highest 34.9% stake in the BPO firm, has not yet indicated whether it would participate in the open offer. EDS was in talks with Barings to buy its stake in MphasiS. There is considerable speculation over whether their talks have fallen through.

Sources at Baring said that they are examining the offer. However, they won't look at any transaction or issue a public statement before April 11, the day on which MphasiS will declare its quarterly results.

MphasiS CEO Jaithirth ‘Jerry’ Rao, who own 3.98% in the company, could not be contacted for his response on whether he would cash out. According to data supplied by the company to the stock exchanges, MphasiS does not have any Indian promoters.

Though EDS said its price is at a 30% premium over the stock’s 26 week average, MphasiS is already ruling higher. MphasiS stock closed at Rs 215.80, up 3.6% on the BSE on Monday. Ever since the news of EDS' interest in Mphasis became public, the stock has gained 24.4% in the past one month.

No plans to merge Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL) this time

1st April 2006: Reliance Industries Limited (RIL) has no plans of merging Reliance Petroleum Limited (RPL) with itself. RPL is the new company floated by RIL for executing the 29 million tonne per annum (MTPA) refinery project at the Special Economic Zone (SEZ) in Jamnagar.

Speaking to FE, RIL’s director Hital Meswani said RPL will have its own identity and at no time will it be merged with parent, RIL. This assumes significance as RPL is being resurrected. In 2002, the Mukesh Ambani controlled RIL had announced merger of the then Reliance Petroleum Limited with RIL for synergy of operations and financial integration. Following this, RIL emerged as the largest private sector company in India on all major financial parameters. However, Mr. Meswani said the same would not be repeated and RPL’s upcoming 29 mtpa refinery, which will come on stream in 2008, will cater specifically to overseas markets.

He said unlike RIL, which is a vertically integrated company with presence in exploration, refining, petrochemicals and product retail, RPL will be an export oriented with a different product slate. There will be no LPG or kerosene production at this refinery which will process 580,000 barrels of oil per day.

The product mix of the new refinery will include high octane gasoline (petrol), diesel, aviation fuels and polypropylene for export purposes.

The combined capacity of the two refineries would make Reliance’s Jamnagar refining facility the world’s largest single location refinery after Praguana refining of Venezuela and SK Corp of S Korea.

Oracle Global acquired 4.5% in i-flex

29th March 2006: Software giant Oracle Global Ltd on Tuesday consolidated its stake in city-based i-flex Solutions Ltd by acquiring another 4.5% from open markets taking its total stake in the banking software company to 47.5%.

Oracle Global acquired 34,50,141 equity shares of i-flex Solutions Ltd from March 13 to March 24, i-flex informed the Bombay Stock Exchange. Oracle Global Mauritius is the arm through which Oracle holds 43.08%.

Oracle had earlier acquired 41% stake in i-flex through Oracle Global Ltd, from Citigroup and, subsequently, made an open offer for additional 22% stake at Rs 882.6 per share.

Oracle could mop up only a 2-per cent stake in the open offer which took its stake to 43.08%.