China's iSoftStone says CEO-led group cuts buyout offer
(Reuters) - Chinese IT services provider iSoftStone Holdings Ltd ISS.N said the chief executive and his backers have cut their buyout offer by 7 percent after it reported a second-quarter loss and warned of further losses.
A buyout group led by Chief Executive Tianwen Liu and China AMC Capital Management offered 54.5 U.S. cents per share, or $5.45 per American depositary share (ADS), valuing the Beijing-based company at about $309.8 million.
The group had offered 58.5 U.S. cents per share, or $5.85 per ADS, in June.
The new offer represents a premium of 9.2 percent to iSoftStone ADSs Friday close of $4.99.
The company reported a net loss of $1.9 million, or 3 cents per share, for the second quarter ended June 30 compared with a profit of $3.6 million, or 6 cents per share, a year earlier.
ISoftStone also forecast a third-quarter net loss of $1.2 million. The company is scheduled to release its quarterly earnings between November 13 and November 15.
Liu owned about 11.2 percent of the company's ordinary shares as of March 31, 2012, ISoftStone said on Monday.
Fidelity Management & Research Co was the company's biggest shareholder with a 14.45 percent stake as of June 30, according to Thomson Reuters data.
An independent board committee, formed to consider the deal, said it was evaluating the latest offer.
The buyout group comprises China AMC Capital Management Ltd, Accurate Global Ltd, Advance Orient Ltd and CSOF Technology Investments Ltd.
(Reporting by Lehar Maan in Bangalore; Editing by Kirti Pandey)
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