HP aims to acquire Digital GlobalSoft

MUMBAI: Hewlett-Packard Co. (HP) proposes to buy the remaining nearly 49 percent it does not already own in its Indian subsidiary Digital GlobalSoft at 750 rupees per share, a company statement said.

The planned open offer will cost HP an estimated 10 billion rupees, it said.

The offer is at a 14.2 percent premium over Digital's last traded price of 656.70 rupees at the Bombay Stock Exchange.

HP, the No. 2 computer maker after International Business Machines Corp. and the biggest maker of computer printers, holds 50.6 percent shares of Digital after it took over Compaq Computer Holding Ltd in May 2002.

The statement said the offer will be subject to regulatory approvals and that Digital will cease to be a listed entity on the Indian bourses following the successful completion of the offer.

Reuters