Blackstone group offers to take Pactera private

In this March 10, 2009 file photo, Stephen A Schwarzman, Chairman & CEO, The Blackstone Group discusses "The Global Impact of the Financial Crisis" at Japan Society in New York. Schwarzman said Wednesday, Oct. 14, 2009, the industry's worst days have passed as he confirmed plans to cash in on up to eight of the firm's companies "in the near future." (AP Photo/Osamu Honda, file) Osamu Honda

Private equity firm Blackstone Group LP, along with Pactera's CEO and other managers, have offered to take Pactera private in a deal that values the Chinese technology consulting and outsourcing firm at $680.4 million.

Shares rose 31 percent Monday. Through Friday's close, before news of the offer, Pactera's stock had lost about two-thirds of its value over the past year.

Blackstone (BX) and the group of Pactera (PACT) leaders are offering $7.50 for each U.S.-traded share of the company that they don't already hold. That's 43 percent higher than Friday's close of $5.26 on the Nasdaq stock market and puts the value of the company at $680.4 million, based on Pactera's the estimated 90.7 million shares outstanding.

The group of potential buyers working with Blackstone includes Pactera's non-executive chairman, Chris Chen; its CEO, Tiak Koon Loh; and three of its executive committee members.

Pactera said that its board will likely form a special committee of independent directors to review the proposal.

It is one of several recent buyouts efforts by private equity firms of U.S.-listed Chinese companies.

Citic Capital Partners said last week that it, along with one of the company's co-founders, would take technology services firm AsiaInfo-Linkage Inc. private in a roughly $890 million deal. Focus Media Holdings Ltd. shareholders agreed in April to a deal to sell the Chinese advertising company to private equity firm Carlyle Group and a handful of Chinese investors for $3.7 billion.

Shares of Pactera jumped $1.61, to $6.87, by early afternoon.

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