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Tech Mahindra leading race to buy Mphasis

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With an aggressive offer, is leading the race to acquire IT company . It has been revealed by the people familiar with the matter that senior management at might  turning this billion-dollar sale process into an interesting duel by aligning with a competitive offer from a private equity buyout fund.

Tech Mahindra leading the race to buy Mphasis
Contenders Apollo and Blackstone are waiting for the final offer from Tech Mahindra.

Before submitting final binding offers soon, the companies in the midst of due diligence are – Tech Mahindra, Global Management and Group. As per the ongoing suggestions, offer price of Tech Mahindra is at over 20 per cent premium to the recent market price of Mphasis. However, the rival bidder, a financial investor, might find it unviable.

If most of the things will be equal, then Mphasis is expected to align with the bid from Apollo. The company has indicated to HP that sale to a strategic suitor may not be in the interest of a long-serving incumbent management. HP owns 60.6 per cent in Mphasis and it is expected to sell it to the highest bidder.

Contenders Apollo and Blackstone are waiting for the final offer from Tech Mahindra. Tech Mahindra’s aggressive bid is relying on revenue synergies with Mphasis, which would help the former boost its BFSI revenues.