If HP’s acquisition of EDS goes through, in our view it is likely to lead to an open offer for minority shareholders of Mphasis (~61% owned by EDS). We believe it makes sense for combined entity to take Mphasis (27,000 emp) private and fully merge it with offshore arm of HPQ (est. ~30,000 emp).
What happened in the Digital Globalsoft[Digital Equipment India Ltd] case – Post merger with Compaq, HP had merged HP-ISO with Digital Globalsoft (majority owned by Compaq) and then de-listed it. HP had made an open offer of Rs750 per share (at ~50% premium to floor open offer price) and finally de-listed at Rs850 per share.