Corporate war brewing in the Indian IT sector - HCL VS Infosys

Here is a high octane corporate war brewing in the Indian IT sector. Indian tech company HCL Technologies Ltd. has made a direct challenge to Infosys Technologies by offering to buy U.K. software consultant Axon Group Plc. Noida based HCL has offered to pay about 441 million pounds ($814 million) in cash to Axon. This is much higher than 407.1 million pounds which is what Infosys offered to pay Axon on August 25. Interestingly, Axon has issued a statement saying it welcomes HCL's intention to make an offer. "Board is pleased that HCL has recognised the quality of the Axon business and has decided to announce its intention to make an offer."   It further said: "Axon has entered into an inducement fee agreement with HCL under which Axon could be required to pay HCL a fee of 1% of the value of the HCL offer." This means Axon will pay HCL Technologies 1% of the offered price if the deal fails. There will now be a 45-day period during which another company can make a bid. HCL has offered to pay 650 pence a share, 8.3% more than the 600 pence offer by Infosys.   Infosys, on the other hand, made an announcement: It said it "is considering its position and urges Axon Shareholders to take no action at this time. A further announcement will be made in due course".