Counterbid rumours boost Axon shares by 21 per cent, Infosys pares gains

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 103p, 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-p 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- last September on fears of an economic slowdown and capital spending cuts.