The share prices in Indian outsourcers
Infosys Technologies and HCL Technologies have been hit this
morning, as they entered a bidding war for the purchase of British
SAP consultancy Axon Group.
The winner of the battle will be responsible for the largest
overseas acquisition by an Indian IT firm, but a bidding war will
push up acquisition costs and delay integration of Axon, which is
seen as a key vertical opportunity by both firms.
And it can not be ruled out that another firm may enter the
fray, pushing costs up further.
This morning, HCL's share price slumped 8.3% and Infosys, which
made the first move for Axon, saw its share value tumble over
3.3%.
Last Friday, HCL bid £441.1m for Axon, after Infosys had
previously bid 407m. Infosys said it was now considering its
position, not ruling out a higher counter bid.