IPVG Ups PeopleSupport Bid

0

PeopleSupport Inc. shares gained nearly 8 percent Friday after IPVG Corp., a call center operator based in Makati City, Philippines, said it had raised its unsolicited takeover offer for the Los Angeles-based outsourcing company.


IPVG said it will offer $17 per share, an increase over the $15-a-share bid it made in November, which was rejected a month later by PeopleSupport.


“We understand that the (PeopleSupport) felt that … a purchase price of $15 per share was inadequate and was not the best way to enhance shareholder value,” IPVG said.


The increased offer follows a letter last month from the Galleon Group, a New York-based hedge fund with a 24 percent stake in PeopleSupport, which urged PeopleSupport Chief Executive Lance Rosenzweig to reconsider the $15-a-share buyout offer and drop its newly adopted poison pill provision.


The offer represented an 11 percent premium on PeopleSupport shares the day before the deal was made public.


Shares in PeopleSupport shot up 7.5 percent to $14.45 in early trading Friday on the Nasdaq.

No posts to display