Financial information

IT management firm DXC receives takeover approach

Oct 4 (Reuters) – DXC Technology (DXC.N) said on Tuesday it had been approached by a financial sponsor about a possible takeover of the IT management company, without disclosing further details.

Shares of the company, which has a market capitalization of nearly $6 billion, jumped nearly 9% on Tuesday before trading halted. They were up 5.5% after trading resumed.

The company has not received any formal proposal but is engaged in preliminary discussions, she said.

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Baring Private Equity Asia has made the takeover approach, according to a tweet from a Bloomberg reporter. Baring did not immediately respond to a Reuters request for comment.

If a takeover succeeds, DXC would be one of many high-flying companies that have opted to go private as soaring interest rates and severe levels of inflation depress stock prices.

Last month, Vista Equity Partners offered to buy software security company KnowBe4 Inc. Read more

In August, air cargo company Atlas Air Worldwide Holdings Inc (AAWW.O) agreed to be taken private for nearly $3 billion by a group of investors led by private equity giant Apollo Global Management Inc ( APO.N).

The report comes more than a year after DXC ended merger talks with French IT consultancy group Atos SE, which had made a $10 billion bid for the company.

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Reporting by Niket Nishant and Yuvraj Malik in Bengaluru; Editing by Krishna Chandra Eluri

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