Nasdaq-listed software company iGate Corp has cancelled a press conference today where it had said it would announce a "significant corporate development", indicating that the much-awaited deal between iGate and India's seventh largest information technology firm Patni Computer Systems has hit a roadblock.
A consortium mainly comprising iGate and venture capital fund Apax Partners was bidding to buy a 63-per cent stake in Patni Computer Systems.
No details were forthcoming from either company despite repeated media enquiries. According to one report, the Patni board is reconsidering the integration issue and it will meet today to discuss the stake sale. Clarity is expected only after the meet.
The consortium is unhappy with Patni delaying the deal and is unlikely to revise the bid, according to the report.
However, another report says the delay is more procedural in nature than due to any last minute issues with the promoters of Patni Computer.
Phaneesh Murthy, chief executive officer of iGate, said he could not comment on anything except to say that he would next talk to the media at the company's earnings announcement later this month.