CSC has confirmed it has thrown its hat into the very small ring of firms bidding to take over Xchanging, offering six per cent more than rival bidder Capita.
Capita was left the only bidder for Xchanging earlier this month, when private equity outfit Apollo upped and left the negotiating table. Capita’s 160p per share offer for the BP and software provider was worth around £412m.
However, late yesterday CSC upped the stakes with a 170 pence per share bid. It urged those shareholders still dithering over Capita’s bid not to accept.
It said further announcements would be made in due course, adding that regulations meant it had until 17:00 on 9 December to announce whether it intended to make a “firm offer” for Xchanging.
CSC’s offer is sure to set investors’ hearts pumping, with the prospect of a bidding war pushing the price up even further at least a possibility.
Xchanging’s staff, on the other hand, might feel themselves caught between a rock and a hard place. Neither company is renowned for their touchy feely attitude to staff, with Capita workers forced to pay for their own cutlery, even as CSC workers face the axe. ®