UPDATE 1-Bid for Patni likely to be under 550 rupees- source

* Decision expected in the next week — source

* Patni shares rise as much as 3.2 percent
(Recasts, adds sourcing, details)

MUMBAI, Dec 24 (BestGrowthStock) – The winning bid for a majority
stake in India’s Patni Computer (PTNI.BO: ) was likely to be
under 550 rupees a share, a person with direct knowledge of the
matter said, which is 12.5 percent above its Friday closing
price.

Shares in Patni rose as much as 3.2 percent on Friday after
media reports that leading bids for a majority stake in the
firm ranged from 530 rupees a share to 600 rupees a share.

The Economic Times said on Friday that private-equity firms
Carlyle [CYL.UL], Advent International and Akansa Capital had
partnered to bid 600 rupees a share, while the Business
Standard said a consortium of Apax Partners and iGate (IGTE.O: )
was the lead bidder at 525 to 530 rupees a share.

Sources told Reuters that both groups had made bids, and
one of the sources said a decision was expected in the next
week.

Patni, which has a market value of about $1.4 billion,
declined comment. Carlyle and Apax were not immediately
available for comment.

Shares in Patni ended 1.74 percent higher at 488.85 rupees,
outperforming the main index (.BSESN: ), which ended 0.45 percent
higher.

Talks to sell a stake in the software services exporter
have been going on for about two years, but Patni has failed to
seal a deal due to valuation gaps with potential buyers,
sources previously told Reuters.

The founding Patni brothers are looking to sell their 46
percent stake, while private equity firm General Atlantic plans
to sell its roughly 17 percent holding, the sources have said.

Two sources with direct knowledge of the matter said on
Friday that a deal hinges on whether all three founding
brothers agree to terms of a deal to sell their stakes.

“If even one of them finds any issue with the deal the
entire process would fall apart. The only difference this time
is that competitive financial bids have been placed,” one of
the sources told Reuters.

Patni (PTI.N: ), a mid-sized Indian IT services firm also
listed in New York, provides technology outsourcing services to
industries such as insurance, telecom, utilities and retail.

Small and mid-cap Indian IT companies have been grappling
with tepid demand, high attrition rates and a rise in expenses,
resulting in reduced profitability for some.
(Reporting by Sumeet Chatterjee and Bharghavi Nagaraju;
Editing by Jui Chakravorty and Tony Munroe)

UPDATE 1-Bid for Patni likely to be under 550 rupees- source