HP to acquire only 24% now in Digital Globalsoft

By siliconindia staff writer   |   Wednesday, 10 December 2003, 20:30 IST
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MUMBAI: The controversial merger between Digital GlobalSoft and HP’s software division earlier this year has resulted in the latter having to pay anywhere between Rs 200 crore and Rs 500 crore less to Digital’s shareholders, depending upon the book building-price, according to analysts here. Moreover, it has allowed HP to acquire 24% now, compared to 49% before the merger, reports Economic Times, an Indian daily. Hewlett Packard’s decision to delist Digital GlobalSoft from the Indian bourses was accompanied by a number of twists and turns. The story begins in April ‘02, when US-based Hewlett Packard signed a definitive agreement for merging with Compaq in the US . Compaq held around 50% in Bangalore-based Digital GlobalSoft. The acquisition should have triggered an open offer, some analysts feel, as there seemed to be a change in management control. However, Digital GlobalSoft was exempted from the open offer requirement as Sebi rules then exempted mergers. Hardly had the controversy over the open offer died down, when speculation started on HP’s plans to consolidate its various entities in India . There are several companies HP owns in India (Source: ET)

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