3i Infotech shares zoom on IBM stake buy report

Shares of 3i Infotech rose over 10 per cent on Wednesday on a media report that International Business Machines (IBM) was in talks with ICICI Group to acquire its 20.33 per cent stake in the Mumbai-based IT firm.

IBM has made an offer between Rs 65-85 a share to ICICI Group to purchase its stake in 3i Infotech, a business news channel reported during the stock market hours on Wednesday. According to the report, ICICI Group is also talking with a couple of other bidders.

Business Standard could not independently verify the report.

3i Infotech shares, which opened at Rs 46.10 on the Bombay Stock Exchange (BSE) on Wednesday, gained Rs 4.70 to close at Rs 50.80. The company’s stock touched a high of Rs 51.35 during the day’s trade.

On the BSE, 39 lakh shares of 3i Infotech were traded, nearly seven times its two-week average quantity.

Top officials of 3i Infotech were not available for comment. A spokesperson of ICICI Bank said, “It is a financial investment and we will explore opportunities for divestment at an appropriate time.” An email query sent to IBM did not elicit any response.

In the last two years, there have been several media reports about ICICI Group planning to sell its stake in 3i Infotech. ICICI Bank, which had 9.62 per cent stake in the IT firm as of June 30, 2009, has sold its stake in the open market over a period of time.