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Deal in trouble? Snapdeal board rejects $850 mn offer from Flipkart

Offer which was rejected by the Snapdeal board, felt the amount undervalues the company

Press Trust of India  |  New Delhi 

Snapdeal Flipkart
SoftBank, the Snapdeal's largest investor, has been proactively mediating the sale for the past few months

Snapdeal's board is believed to have rejected a offer of $800-850 million (around Rs 5,500 crore) from larger rival

According to sources privy to the development, has completed the due diligence process and has made an offer of $800-850 million to buy


However, the offer was rejected by the Snapdeal's board which felt the amount undervalues the company as the due diligence report is clean.

"The first offer has been rejected but talks are still on. It is an ongoing discussion," said one of the sources.

When contacted, Snapdeal, and declined to comment.

SoftBank, the Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board also has representation from founders (and Rohit Bansal), NVP and Kalaari Capital.

Sources said Ernst & Young, which was roped in by to conduct a due diligence on Snapdeal, submitted its report a few days ago, following which the offer was made.

The deal between and Flipkart, if completed, would mark the biggest in the Indian space.

One of the leading contenders in the Indian space, has seen its fortunes failing amid strong competition from and

Compared to a valuation of about $6.5 billion in February 2016, the sale to could see being valued at about $1 billion.

has already written off over $1 billion on valuation of its investment in

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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