Wednesday, 19 September 2007

Infosys dismisses the crazy rumours

Bloomberg carried this report a few minutes ago:-

"Infosys Technologies Ltd. Chief Financial Officer V. Balakrishnan denied reports that India's second-largest software maker is in talks to buy Sage Group Plc or Atos Origin SA.

Bangalore-based Infosys also isn't negotiating with Cap Gemini SA about buying any part of the company, he said in an interview from Bangalore. "

Where do these rumours come from? All the above seemed 'mad' to me and most other observers. In the case of Atos and Capgemini, Infosys would dilute its eanings considerably and, in any case, seems quite capable of competing effectively organically with these companies. Sage, with its emphasis on SMEs, is well outside Infosys' large corporate marketplace.

Having said that, I expect Infosys to buy in Europe - medium sized companies with strategic opportunities. Eg IPR in product with a long services tail which can be offshored.

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