Submitted by Aditya Rao on August 25, 2008 - 10:49am.
The biggest acquisition in the
history of Indian IT services has taken place and is expected to be completed
fully by the month of November. Indian IT services giant and one of the market
leaders Infosys has announced that it will be acquiring the UK based Axon group.
Particulars include Infosys going in for the buy with an aggressive all-cash buyout.
They will be paying around 600 pence per share which is almost 100 pence more
than Axon’s current market value as of today.
This amounts to a total of almost
Seven Hundred and Fifty Five Million Dollars.
For Infosys to make a major
decision like this and buy
a very strong company like Axon in the current economic situation is a bold
and confident move. Therefore expect heightened investor confidence in the
company and notable trading in the stock over a short term period.
A falling stock market is never
good news for anyone: the economy, consumers and worst of all Traders. The
current situation is horrible for everyone who has put their money into the
stock markets and it is unlikely that as good as an investor one is, he or she
would have been unable to make a profit. Things are looking good for the Long
Term Investor with a keen eye to buy shares of good companies which are trading
at ridiculously low prices. However for the short term trader things have
reached nightmarish levels. A good strategy for him to follow would be to mimic
the actions of a surfer and ride the waves.
