LONDON (Alliance News) - Xchanging PLC on Monday urged shareholders to accept the GBP488.0 million takeover offer made by consulting and outsourcing company Computer Sciences Corp by Friday or face the prospect of losing the chance to sell their shareholdings to a bidder.
To date, CSC has received the backing of about 57% of shareholders in the business processing, procurement and technology services provider, including a 10% stake acquired from Capita PLC last month.
In the event that CSC does not hit the 75% mark by 1300 GMT on Friday this week, the bidder will be entitled either to lapse its offer or to extend the offer period.
Xchanging warned that shareholders could lose the opportunity to sell up if Ebix Inc, an insurance software outsourcing company which expressed interest in making a competing bid, does not table a firm offer in the event CSC opts against extending its offer.
Ebix approached Xchanging on November 16 with a proposal to acquire the company at 175 pence per share, and reiterated interest in making a firm offer the following month. However, Xchanging said on Monday that Ebix has not confirmed whether it will be able to beat CSC's 190p offer.
"Given the very limited engagement that Ebix or its advisers have had with Xchanging to date, there remains no certainty that Ebix will announce a firm intention to make an offer," Xchanging said in a statement.
"Accordingly, the Xchanging board is currently unable to express any confidence in the likelihood of a superior cash offer from Ebix," the company added.
CSC acquired a stake of nearly 10% from Capita in December, after the FTSE 100 outsourcing company dropped out of the bidding process.
Capita had been in pole position to acquire Xchanging until CSC beat its 160p bid.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Capita (CPI)