ERA Technology International said yesterday that Blackstone Group, together with the company’s management, made a $680.3m non-binding proposal to take China’s largest technology outsourcing firm private.
Pactera said it expected its board of directors to form a special committee of independent directors to consider the offer of $7.50 per share. Pactera shares surged 31.1 per cent to $6.90.
Suspicion over accounting standards has been a major drag on US-listed Chinese companies, giving management at some companies an opportunity to team up with private equity firms and make offers that capitalise on big discounts to peers on the Hong Kong and Chinese stock markets.
Before yesterday’s news, Pactera shares were down 33.8 per cent this year while the Nasdaq ,where it is listed, is up 15.9 per cent.