Infosys sticks to its fiscal conservatism and has said that it will not submit a higher bid to counter HCL's bid for acquisition of Axon Group plc. The IT giant said in a statement - "After careful consideration, the Board of Infosys has concluded that it will not increase the price of its original offer dated August 25, 2008." This clears the field for HCL to takeover UK-based SAP software consultant Axon.
While Infosys has put a bid of 600 pence, HCL countered that bid with a 650 pence offer after a month on September 26. Later in the month, Axon recommended to its shareholders to accept the offer from HCL Technologies and to reject Infosys offer.
Infosys added in its release that it has a fast-growing and profitable SAP-led business transformation practice and the decision will have no material impact on its strategic plans.
Bangalore-based Infosys also announced that its standalone net profit for the quarter ended September 2008 was up 10% at Rs 1,390 crore against Rs 1,262 crore in the previous quarter. But the stock prices did not react positively and shares hit a new bottom at Rs 1,040.