Capita holds out for Xchanging, extends offer for a second time

C'mon you know you want it, says outsourcer

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Outsourcing giant Capita has extended the window by two weeks for business processing outfit Xchanging's investors to accept its £412m offer for the outfit.

The outsourcer had originally slapped 160 pence per share on the table to tempt investors by 30 November. However, two weeks ago rival CSC offered a 170-pence-per-share bid. Software outsourcing biz Ebix also threw its hat in the ring with a 175p per share offer.

This means Capita is therefore extending its offer for a second time, and it could even extend it again if either CSC or Ebix decide to make a firm offer for Xchanging by 9 December, noted John O'Brien, an analyst at TechMarketView.

"Capita owns 10 per cent of Xchanging today, and has got valid acceptances from a further 14 per cent of its shareholders – so 24 per cent in total," he said.

He added: "Shareholders have failed to give Capita full backing because of the significant discount of its offer versus the potential bids from CSC and Ebix. Indeed the bidding war has been great news for Xchanging’s share price, which has risen steadily, and is now higher than all three offers at 180p." ®


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