Nov 4 Chinese IT services provider iSoftStone
Holdings Ltd 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 Nov. 13 and Nov. 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