PeopleSupport spikes on merger with Essar Group, overshadows Q2 loss
Shares of PeopleSupport, Inc. (Nasdaq:PSPT) are jumping in pre-market trading after the offshore business process outsourcing provider said this morning that it will merge with Aegis BPO, part of Indian conglomerate Essar Group, through a $250 million cash transaction.
The merger news overshadowed the company’s lackluster second-quarter earnings report. PeopleSupport swung to a loss in the quarter due to increased employee compensation costs, facility costs, and the appreciation of the Philippine Peso compared with a year-ago. Results also fell short of the consensus on Wall Street.
Shares surged 26%, or $2.47, to $12 in pre-market trading. For detailed price information and recent news stories about PeopleSupport, click PSPT.
