No progress seen on Patni stake deal

MUMBAI: Nearly three months after the Patni brothers, Ashok and Gajendra Patni, decided to sell their stake in the country’s sixth-largest exporter Patni Computer Systems there are no signs of a deal yet.

Talks with potential investors have hit a roadblock because the two brothers are insisting on retaining some of their rights as executive directors even after selling part of their stake in the firm. Both brothers own a little over 14 per cent each in the firm. Boutique investment banking firm Avendus is the advisor to the transaction.

Earlier, the stake sale was reported to have run into problems because Mr Narendra Patni, who is chairman and CEO, and the brother actively involved in the running of the company, had the first right of refusal for the brothers’ stake.

In effect, any purchase by an outside investor had to approved by Mr Narendra Patni and this was a dampener to potential investors. It also ruled out any interest from strategic players like IBM and CSC. Mr Narendra Patni has gone on record stating that he does not intend to sell his stake in the firm.