Counterbid rumours boost Axon shares by 21 per cent, Infosys pares gains
27 August 2008
Mumbai: Shares of UK-based SAP consulting firm Axon Group Plc rose 21 per cent on the London Stock Exchange following rumours that a £407.1 million ($753 million) takeover offer by Infosys Technologies could face a counter bid. (See: Infosys to acquire UK's Axon for $753 million)
Axon's board had agreed to the Infosys offer but analysts said the offer could still go up, helping Axon's shares up 103½p, or 20.6 per cent, to 606p.
Infosys' cash offer values Axon at 600 pence a share, a 19.4-per cent premium over its Friday close of 502.5 pence. The offer also includes an interim dividend of 2-¼p the company declared following the offer.
A day after Infosys announced the offer, Axon also reported a 28 per cent year-on-year increase in its first half (January-June) revenue at £123.9 million, boosting the scrip further.
Infosys, on the other hand, gave up gains of more than 2 per cent and ended lower on Tuesday after a London-based securities house said it could face a counter bid to acquire Axon.
Some analysts even took the possible counter offer for Axon to 700p a share. In fact, Axion shares have fallen from highs of 982-½ last September on fears of an economic slowdown and capital spending cuts.