Electronic Data Systems (EDS), A US company, has announced the acquisition of 52% stake in MphasiS BFL Limited, an Indian company highly successful in outsourcing and BPO. I am quoting from the website of EDS:
"PLANO, Texas – EDS today announced it has completed the acquisition of a majority stake in MphasiS BFL Limited, a leading applications and business process outsourcing (BPO) services company based in Bangalore, India. EDS acquired 83 million shares (approximately 52%) of MphasiS for approximately US$380 million in cash.
MphasiS will operate as an independent EDS company. With the addition of MphasiS and current expansion plans, EDS' total India work force is projected to exceed 20,000 by year end."
(Source: http://www.eds.com/news/releases/3095/)
So, you can see that EDS bosses have made their mind to be very aggressive in the Indian market. I am sure that many western companies will become more serious about India seeing the example of EDS. So, many small and medium Indian companies can expect to be taken over by western companies. My suggestion for the western companies is not to be in a hurry for acquiring all the Indian companies that come before them. On the other hand, share holders and board of directors of the Indian companies should also be careful about take over bids from foreign companies. They should first try to see the long term picture.
What do you think?
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