Warburg Pincus fails to sell its stake in WNS

Business process outsourcing giant WNS Holdings Ltd  has halted discussions with several suitors who were eyeing a controlling stake in the New York-listed company. Private equity giant Warburg Pincus, which has a 50.12 holding in WNS, was looking to sell its stake.

The company had held talks with several parties, including Genpact, India's largest BPO. Private equity investor Blackstone was also in the fray. WNS did not say why it had ended the discussions, but it was reportedly due to tepid response – it was unable to get the price it was seeking.

''The board of directors of the company has completed its consideration of the expressions of interest (EoIs) received from interested parties regarding a possible change of control transaction, and has decided not to pursue further discussion,'' a company statement said.

India's second largest business process outsourcing firm did not divulge the names of the bidders and the price at which they valued the company.

The WNS statement added, ''The the management is focused on performance, which continues to be in line with the guidance reiterated in the past earnings call.''

Strategic buyers stayed away from the process considering the macro-economic environment and the uncertain outlook for the BPO sector. Further, there were concerns that WNS' leveraged acquisition of Aviva's back-office for $228 million in June 2008 was not progressing on expected lines.