PeopleSupport Confirms $356 Million Takeover Offer

PeopleSupport Inc., a provider of business services, confirmed the receipt of an unsolicited takeover offer from IPVG Corp. and AO Capital Partners that values the company at about $356 million.

The cash offer for $15 a share is being considered, Los Angeles-based PeopleSupport said today in a statement. PeopleSupport rose 3.8 percent to $14.58 in late trading after rising $1.33, or 10 percent, to $14.05 at 4 p.m. New York time in Nasdaq Stock Market composite trading.

Business services will grow to $11 billion annually by 2010 in the Philippines, the Makati City, Philippines-based IPVG said in a statement on its website. PeopleSupport said that out of its 9,000 employees, about 8,400 are based in the Philippines.

PeopleSupport provides transcription and captioning and additional services from its centers in the Philippines, Costa Rica and the U.S. PeopleSupport's largest customers are Expedia Inc. and Washington Mutual Inc. and its newer clients include JPMorgan Chase & Co.

PeopleSupport on Nov. 6 forecast full-year earnings more than double analysts' estimates and its third-quarter profit trounced expectations. The company forecast 2007 sales of as much as $141.4 million.

Galleon Group, the company's largest investor with 24 percent, complained earlier this month that PeopleSupport was straying from its core mission by embarking on an ambitious real estate project in the Philippines, according to a letter Galleon's managing member Raj Rajaratnam sent to the company.

PeopleSupport spokeswoman Jamie Moser didn't immediately return a message.

To contact the reporter on this story: Peter J. Brennan in Los Angeles at pbrennan3@bloomberg.net.

To contact the editor responsible for this story: JoAnne Norton at jnorton@bloomberg.net.

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