Wednesday, December 1, 2010

iGATE (Nasdaq:IGTE) Shares Crushed on Patni Bid Rumors

Rumors continue to circulate concerning the possibility iGATE Corporation (Nasdaq:IGTE) may be putting together a joint bid for Patni Computer Systems Ltd.

Shares of iGATE got pummeled Tuesday on the news, as a report from the Wall Street Journal gave the rumor some heft.

iGATE is reportedly working with Apax Partners LLP on a bid.

The shares of iGate were hit hard because of the perceived and probably real pain it would take to merge the companies.

A consortium of Advent International Corp. and Carlyle Group are also interested in taking over Patni.

iGate closed Tuesday at $20.00 even, falling $4.83, or 19.45 percent. Sidoti lowered their price target on them from $30 to $24, and their rating from "Buy" to "Neutral."

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