Tata Tea’s appetite for global beverages companies doesn’t seem to dwindle. After buying Tetley, Good Earth, Eight O’ Clock Coffee, Himalayan Water and selling 30% stake in Glaceau for handsome profit, Tata is likely to bid for US drinks arm of UK-based Cadbury Schweppes.
Cadbury Schweppes is looking to offload its US beverage business as it aims to concentrate on its confectionery business to improve profitability. The beverage business includes Snapple range of fruit, diet drinks, iced teas and Dr. Pepper, 7UP, Snapple and Hawaiian Punch.
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After the Blackstone-HDFC-Barclays BPO deal, another big player Citigroup is in talks to sell 80% stake in its BPO arm Citigroup Global Services (formerly eServe International).
The deal could be all-cash worth $700-750 million (Rs2,870-3,075 crore), valuing it at around $0.95billion.
Previously companies like IBM, TCS, Wipro, Infosys and ADP were said to be interested in acquiring the company. But now reports say that a leading Private Equity investor could emerge out to be the winner.
The likely reason for fallout of the strategic investors is the lack of long term commitment from Citi. It was only willing to offer maximum 3-year contract unlike GE which offered multi-year outsourcing contract.
Unconfirmed report cite 3i, Blackstone and Carlyle as the potential suitors.
The corporate battles are being foight inside homes these days rather than in closed-room offices. After the recent Bajaj division and Reliance demerger, another family owned IT company - Patni Computer Services is on verge of being restructured.
If reports are to be believed, then major international software players like IBM, CSC and PE firms like Blackstone and Carlye are eyeing a stake in the company. PCS is among the top 10 IT companies of India and among the oldest. But compared to its peers, like Infosys, TCS, WIpro, Satyam, it’s performance has been a laggard.
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