Monday, 1 April 2013

Polaris Financial Technology approaches Wipro, L&T for services unit sale

Chennai-based Polaris Financial TechnologyBSE 3.82 % has approached engineering and construction group L&T and India's third-largest technology services exporter Wipro to gauge their interest in acquiring its services business, three people with direct knowledge of the matter said.
Polaris, through investment bankers, has also sent feelers to at least one multinational information technology services firm. The discussions, while at a very early stage, assume significance for L&T Infotech, which nearly four years ago made an unsuccessful bid to acquire India's then fourth-largest, but fraud-hit IT company, Satyam Computer, which was eventually bought by the Mahindra Group.

WiproBSE -1.33 % declined to comment on what it termed market speculation while an L&T spokesperson said, "We neither confirm nor deny market speculation."

Polaris termed the news as having 'absolutely no substance'. In an emailed statement, Polaris said that as per its earlier disclosures to stock exchanges, the company's board had set up a task force with a mandate to explore various options to unlock shareholder value.

"To this end and purely confined to this mandate, the task force is meeting multiple strategic advisors, consultants and investment bankers and seeking to analyse various options for maximising customer and shareholder value, including possible acquisitions (by Polaris as well) if that would be deemed appropriate," a Polaris spokesperson said.

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