Patni sheds 4% as iGate defers announcement

IT firm Patni Computer Systems today dropped nearly four per cent in the early trade on BSE, after the Nasdaq-listed iGate called off announcement of its "significant corporate development", where it was expected to notify its deal for buying 63 per cent stake in the company.

The iGate-Apax consortium, which is tipped to be the front-runner for acquisition of a majority stake in India's sixth largest IT firm Patni, was expected to make the acquisition announcement today.

Reacting to the cancellation of the announcement, shares of Patni Computer Systems started the day on a subdued note and plunged by 3.67 per cent to an early low of Rs 459.15 a piece on Bombay Stock Exchange.

The scrip witnessed a similar downslide on the National Stock Exchange and shed 5.3 per cent to trade at Rs 451.20 in the morning trade.

Patni brothers -- - Narendra Patni, Ashok Patni and Gajendra Patni -- were in talks to sell their 46 per cent stake, while private equity firm General Atlantic was selling its roughly 17 percent holding in the software services exporter.

Sources in-the-know said the terms of the estimated USD 1 billion deal are still being worked out.

Meanwhile, the 30-share benchmark Sensex was quoting firm at 20,605.66, up 96.57 points at 12:37 PM.