Australia's News Corp. eyeing stake in Indian arm of US-based Hughes Electronics

  • Business
  • Monday, 14 Jul 2003

NEW DELHI, India (AP) - Australia's News Corp. has offered to buy a 20 percent stake in the Indian software arm of U.S.-based Hughes Electronics Corp., a news report said Monday. 

News Corp. has offered to buy 6.73 million shares of Hughes Software Systems for 1.56 billion rupees (US$33.6 million) in cash, Dow Jones Newswires reported. 

Shares of Hughes Software Systems at the Bombay Stock Exchange jumped 1 percent following the statement from Hughes Software - a leading provider of telecommunication software. 

News Corp.'s cash offer came after the Rupert Murdoch-owned company agreed to take over the U.S.-based Hughes Electronics Corp., which holds a 56 percent stake in Hughes Software Systems in India. 

Under Indian takeover regulations, when there is a change in management control at a company, the acquirer must offer to buy at least a 20 percent or more stake from minority shareholders. - AP

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