The market is happy that Tech Mahindra took a sane decision instead of jeopardizing it all to merely save its face and ego. It is a well known fact that it was an aggressive bidder to acquire Hewlett Packard’s 60.5% stake in Mphasis. Tech Mahindra was interested in the company given its strength in financial services.

But what we hear now, unconfirmed news, is that it has decided to pull out of the deal as PE fund, Blackstone, another contender has reportedly offered to buyout the management was about to submit a much aggressive bid, quoting  a much higher price.

Tech Mahindra opted out probably because it finds value in the acquisition only upto a certain value and beyond that, does not see much business sense. This is a good decision and the market is cheering it with a 1.5% rise in price at Rs.471 with an intra day high at Rs.473.