Featured Job: IT Recruiter for Inventcorp, Hyderabad
News »Browse Articles » IT majors lose interest in WNS Global stake buy
0
Vote Vote

IT majors lose interest in WNS Global stake buy

Views 1 Views    Comments 0 Comments    Share Share    Posted 26-08-2009  

T biggies like Infosys Technologies, Tata Consultancy Services (TCS) and Wipro are not keen on picking up Warburg Pincus’ stake in
Mumbai-based BPO firm — WNS Global Services - on account of high valuations and the lack of a strategic fit with their existing businesses, according to multiple sources tracking the development.

This has substantially reduced the level of interest in one of the biggest BPO opportunities in recent times. Warburg’s decision to exit its 50% stake in WNS had generated a lot of interest from private equity funds and players from the IT and BPO sector.

Infosys Technologies was tipped to be one of the most likely contenders for Warburg’s stake and its name was frequently mentioned as a potential bidder. “Infosys was approached by the bankers, but they decided not to go ahead. The price was too high,” said a person with direct knowledge of the matter, though the company refrained from making a comment.

Meanwhile, an investment banker, who has worked with Infosys in the past, on some transactions said, “Infosys would be interested, if there were platforms specific to an industry or service. The airline industry, in which WNS may have a platform, is itself doing badly. There has to be a differentiator and also a good fit in terms of value and growth,” said the banker.

Like Infosys, Wipro’s name has also frequently come up as an interested bidder, though a source close to Wipro said the company had its hands full with acquisitions made in the recent past, and there were no plans to pursue the deal.

American depository receipts (ADRs) of NYSE-listed WNS, which were trading at $12.74 in early August, now trade at over $15. This has resulted in the valuation moving upwards to around $600 million, said a person tracking the development.

Cognizant Technology Services (CTS), which was earlier reported to be interested, too, is no longer pursuing the deal. However, there has been no official confirmation on this and a CTS spokesperson, told ET, “We do not comment on market speculation.”

Source:
http://economictimes.indiatimes.com/Infy-TCS-Wipro-not-keen-on-Warburgs-WNS-stak
0
Vote  Vote
Enter your comment:
No Comments For This News

Search News

What's the News?

Post a link to something interesting from another site, or submit your own original writing for the Recruitment community to read.

Most Popular News

Most Recent User Submitted News