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HCL Tech counter bid Infosys’ Axon ?

September 4, 2008

We have reliably learnt that HCL technologies is preparing a counter bid to Infosys’ bid for Axon. We had covered the implications of Axon takeover by Infosys on the 26th of August and had clarly stated at the end that a counter bid is not ruled out.

Our due dilligence indicates that HCL Technologies has $100 mn in cash and maybe upto $500 mn including short term investments. HCL has appointed Merill to help it counter bid and arrange for part financing the deal.

HCL Technologies is not present in the SAP domain and the acqusition will complement its existing vericals and strengthen is base in Europe. HCL already is one of the best local employers in the European union and may not face any hurdles while obtaing the clearance if it wins the bid.

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