DSQ witnesses hectic trading, revives acquisition talks

NetScribes/Ganesh Ramamoorthy

For the sixth straight trading day, the DSQ Software counter witnessed hectic activity at the bourses on Monday, fuelled again by market rumours of an open offer for acquiring DSQ Software. The scrip clocked a total volume of 6.37 million shares at the Bombay Stock Exchange (BSE) and 8.63 million shares at the National Stock Exchange (NSE).

While denying the rumour, a DSQ spokesperson confirmed that the company is reviving talks to acquire one more US-based company. "We initially dropped the plans for acquiring the second company. But the talks are now on," he said, adding, the acquisition would be a 100 per cent stock deal for about $60-70 million.

DSQ had earlier acquired the US-based San Vision Technology Inc for $30 million in an all-stock deal. "The reason why we dropped the acquisition plan initially was because we were not able to come to an agreement on the payment modality. We prefer an all-stock deal and the present talks are on that basis," he said.

On Monday, at the BSE, the DSQ scrip opened at the previous close of Rs 809.70 and touched the day's high of Rs 847.65 during afternoon trade, before closing at Rs 793.40 - a loss of Rs 16.30. At the NSE, the scrip opened at Rs 819, Rs 1.50 higher than the previous close of Rs 817.50 and touched an intra-day high of Rs 829, before closing at Rs 791.90 - a loss of Rs 25.60.

Analysts attribute the unusual activity in the scrip to market rumours of an impending change of management at DSQ. While Dinesh Dalmia is said to be moving out of the day-to-day management of the company, both Himachal (HFCL) and Reliance are rumoured to be in talks with Dalmia, who is the vice-chairman and promoter of DSQ, for his 30 per cent stake in the company. A new rumour doing the rounds of the market is that there's an open offer for DSQ shares.

However, officials at DSQ's Chennai headquarters denied all rumours. "There is no basis to these rumours," the DSQ spokesperson told NetScribes. "These rumours have been doing the rounds for a while now, but there is no truth in them."

During the past six days, DSQ scrip has gained just marginally by about Rs 8.70, clocking a total volume of 25.9 million shares. On a month-on-month basis, the scrip has gained by about Rs 179.65 as of September 11, 2000.

Money

Market Impact

Tell us what you think of this report