London/New Delhi: British consultancy major Axon Group on Thursday decided to go ahead with a ₤441-million acquisition offer from HCL Technologies, while withdrawing its support to a smaller bid from another Indian IT major Infosys.
Noting that the HCL offer is at a premium of 8.3 per cent to Infosys' bid, worth ₤407.1 million, Axon said in a regulatory filing that its board "has withdrawn its recommendation of the Infosys Offer and intends unanimously to recommend the HCL Offer when it is made".
When contacted, an Infosys spokesperson in India said that the company was evaluating its options and would announce any further move at an appropriate time.
HCL officials said that they were confident of winning over the support of Axon board for its offer.
India's second largest IT firm Infosys had announced on August 25 a recommended cash offer of 600 pence per share for Axon Group.
Axon had subsequently posted the scheme documents regarding Infosys offer to its shareholders on September 20.
However, HCL Tech announced on September 26 its intention to counter the bid from its bigger Indian rival Infosys with a cash offer of 650 pence per share for Axon.
Axon had entered into an implementation agreement with Infosys, under which it undertook that, in the event of a competing proposal being received from a third party, the board would not vary or amend its recommendation of the Infosys offer for a period of 60 hours from the time Infosys was notified of the competing proposal.
"The 60-hour period during which Axon is prevented from varying or amending its recommendation has now elapsed," Axon said.
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