L&T Infotech in talks to buy Patni stake; stock up 5%

The outsourcing unit of engineering and construction firm Larsen & Toubro is in advanced talks to acquire a majority stake in software firm Patni Computer Systems , the Financial Express reported on Thursday.

"L&T Infotech has been in talks with Patni for sometime now. We have already completed due diligence," the newspaper quoted a L&T source as saying.

The paper said the three Patni brothers - Narendra Kumar, Gajendra Kumar and Ashok Kumar - holding a combined stake of 48.3% in the company, had finally decided to sell.

Earlier talks to sell the stake in 2007 fell through as one of the brothers was not willing to sell.

A spokesman for Larsen declined comment.

"This is a rumour and we do not comment on speculation," Patni's chief financial officer, Surjeet Singh, said in a statement.

 

At 11:11 am, the share was quoting at Rs 479.80, up Rs 22.85, or 5%.

 

Earlier this year Larsen failed in its attempt to acquire fraud-hit Satyam Computer, losing to Tech Mahindra who renamed it Mahindra Satyam.

(Reuters)