Mphasis shares surged nearly 7 percent intraday Thursday after a media report suggested that the US-based private equity firm is set to acquire Hewlett-Packard's share in the company.
"The world's largest private equity investor Blackstone Group is close to acquiring IT firm Mphasis in an over USD 1-billion deal, outbidding two other strong contenders -- Apollo Global Management and Tech Mahindra," a media report said quoting unnamed sources.
The US firm will buy out Hewlett-Packard's (HP) 60.48 percent stake in the Bangalore-based IT services company and announcement is expected next week, a report added.
HP holds stake in Mphasis through its subsidiaries EDS World Corporation (Netherlands) LLC, EDS Asia Pacific Holdings and EDS World Corporation (Far East) LLC.
Foreign portfolio investors has 23.10 percent stake in the company as of December 2015, including Aberdeen Global's 7.81 percent shareholding.
HP's share in total clients business of Mphasis has been reduced from 66 percent in 2011 to 34 percent in 2015.
At 11:13 hours IST, the scrip of MphasiS was quoting at Rs 482.25, up Rs 16.95, or 3.64 percent on the BSE.
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