DSQ calls off BankAm JV

By : |July 17, 2000 0

CHENNAI: India’s DSQ Software Ltd. has called off a planned joint venture
with the BankAmerica Investment Corp (BAIC) to address the financial industry,
its chief executive officer said on Monday.

DSQ CEO Pawan Kumar told Reuters that an objective to convert DSQ-developed
software applications to products with help from BankAm was no longer relevant
because the risk in doing it without BankAm was perceived to be the same.

Another objective, to gain business from BankAm, was being achieved without
the necessity of the joint venture, he added.

"There is no need for the JV anymore because the two main drivers are no
longer relevant," Kumar said.

DSQ had announced an agreement with BankAm for the joint venture last March,
and had aimed for sales of $300 million in three years. It had also contemplated
a spin-off and a separate stock listing of the venture, in which BankAm was
expected to hold 52 per cent and DSQ 48 per cent.

DSQ Software shares fell after the company announced that the joint venture
plan was off. At 10:45 a.m. (0515 GMT), the share was down Rs 44.20 at Rs 880.

(C) Reuters Limited 2000.

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