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San Vision calls off negotiations with DSQ

US-based e-commerce solutions provider San Vision Technology Inc said on Tuesday it was no longer in talks to sell out to Indian software services firm DSQ Software Ltd.

"No transaction whatsoever is currently being negotiated by us with either DSQ or any of its affiliates," Amit Sarkar, vice chairman and chief financial officer of San Vision said in a faxed statement from New York.

He said the firm had given DSQ no extension of the deadline, after the Indian firm failed to close the deal by October 31, 2000.

In July, DSQ had said it was acquiring San Vision for $30 million in stock.

A DSQ spokesman said the firm was still in talks with San Vision.

"The deal is still being renegotiated based on the price factor," the spokesman said. He did not elaborate further.

In December, DSQ said it was renegotiating the price it would pay for the US firm, following the steep fall in valuations of technology firms.

A company spokesman said at that time that the firm was still committed to acquiring San Vision and expected to complete the deal "in about one month's time".

DSQ shares closed down 11.23 per cent at Rs 78.65, barely off its 52-week low of Rs 76.30, while the benchmark Bombay index shed 2.42 per cent.

The shares have fallen over 95 per cent from its 52-week high of Rs 1655 a year ago. This is the third attempted acquisition of a US-based firm by Indian technology companies to have run into trouble in the last six months.

Last week US-based animation firm Film Roman told the Securities and Exchange Commission that its $15 million deal to sell a majority stake to India's leading animation producer Pentamedia Graphics Ltd had run into problems.

In October, Polaris Software Lab Ltd said it was calling off a $21 million cash-cum-stock deal to acquire US software firm Data Inc, following audit committee objections.

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