CNBC-TV18's research analyst, Varinder Bansal: The open offer will also depend on the scheme of arrangemet between Hewlett-Packard & EDS. Open offer will only get triggered if HP makes clear that they are acquiring EDS and not merging/ amalgamating with EDS. As SEBI rules clearly define that only takeovers and substantial acquisition of shares of a listed company fall within the regulatory purview for open offer. Mergers and Amalgamations are outside the purview of SEBI and they are a subject matter of the Companies Act, 1956. EDS in its press release had mentioned that they are in advanced discussions regarding a possible "business combination transaction" with HP which hints towards more of merger than acquisition. So, investorts need to wait for more clarity on scheme of arrangement to take final decision on open offer.

MphasiS in focus

• Hewlett-Packard in advanced talks with EDS for possible merger; deal size seen at $ 12- $ 13 bn
• Alert: EDS holds 60.9% stake in MPhasis
• EDS stock was up 28% yesterday

Open offer for Mphasis?

• No open offer if Hewlett-Packard merger/ amalgamates with EDS
• SEBI says only takeovers and substantial acquisition fall within open offer
• Mergers & Amalgamations are outside the purview of SEBI and they are a subject matter of the Companies Act, 1956
• Scheme of Arrangement Between EDS & HP to determine whether Open Offer Required