Logica Share Discussion Threads

[a0502162] 28/5/2010 10:32

So the price went up on a rumour................and back down when it becomes clear there is no truth in it..................manipulation in order to get some movement in the price.............after all the BUY recommendations, they need to get something happening in order to get their money back!

Talking of getting money back.................how are you doing?

[a0502162] 27/5/2010 17:08

Oh not BAE again............they blow it.................remember!

[robwt] 27/5/2010 16:37

When I first read the story regarding Logica and Infosys I immediately thought it was probably garbage because the Infosys management sees itself achieving further growth organically. My only reason for thinking there may be something in it, was because Infosys are sitting on a huge cash pile and now would be an ideal time to use it.

No, I think there may well be interest in Logica from elsewhere. There have been a lot of names mentioned including Cap Gemini and BAE.

[rnholl] 27/5/2010 13:19

I agree. I have some knowledge of the Indian IT players and they are like the litle girl with a 'curl in the middle of her forehead' ... when they are good they are very, very good but when they are bad they are horrid! They are remarakbly good at runing offshore software and supprt 'factories' and are utterly ruthless about process/service quality with many of them claiming CMMI Level 5 capability. The work seems to suit the Indian Culture and the required degree of Heirarchical Command & Control sits well.

They can also do it cheaply - my guess is they can shave 35-45% of UK/USA costs. This must be very attractive to the UK Government and I would expect them to start awarding large contracts (many of which will be existing contracts that are due to be re-bid and re-let in the next few years) to the Indian players to test the political and commercial waters. EDS eat your heart out!!

However, they really cannot hack the "client facing front-end" where there is complexity and uncertainty and a need for real consultancy and client intimacy sklls. Logica has these in spades and I note that the current Logica Indian operation now employs more people than Logica UK.

Based on this I would think there is scope for an agreed and beneficial merger ragther than a hostile takeover .....

... at what share price?? ... and under what "brand"??

[robwt] 27/5/2010 12:54

rnholl. Logica are probably going to lose out on some projects with this change of Government. We all knew IT was going to be cut, but you are right the fall in the share price has been overdone. In my opinion, so far the cuts announced will not even have an effect on Logica so the falls are more to do with the Eurozone problems and not what may or may not happen with a few contracts.

If the LibCons shelve certain Labour IT projects it will be window dressing. I do not see how any British government can do without the best IT available to it and Logica have an outstanding reputation on this front.

Another bonus is because Logica isn't expensive at the 180p a share mooted in the Daily Mail Infosys rumour; the chance at some near future date of Logica being snapped up by a predator is almost a cert.

[a0502162] 26/5/2010 17:42

I don't think it should be singled out either................they all should be shot!

[rnholl] 26/5/2010 16:43

I still think LOG is oversold. Of course they are exposed to UK Government cut backs in IT but remember that the LOG UK is now only about 21/22% of corporate revenue. The UK Public sector is 60% of that so only about 13/14%. If their Public Sector revenue shrinks by 30% that is 3-4% - this is not disastrous! Logica has transformed into a very "European" company now and will obivously suffer like all others from the general economic situation ... but I don't think it should be singled out as it appears to have been?

[a0502162] 25/5/2010 10:42

it never quite gets there does it!

[robwt] 23/5/2010 14:45

Well, seems it was a rumour.



And from Balakrishnan.

[robwt] 21/5/2010 13:21

With the weakness of Sterling and the Euro it would be a good time for Infosys to strike. They probably won't get a better opportunity.

We will see, but I wouldn't hold my breath on it.

[hvs] 21/5/2010 12:56

lol !!!!

And Onion bhajees at the annoucemnt.

[selborne_edge] 21/5/2010 12:55

Over the years there have been rumours of a takeover of Logica but of course they have never materialised. A partnership with an Indian company would strengthen Logica in the Far and Middle Eaat and would certainly help the share price.

[a0502162] 21/5/2010 12:11

I said to top up the other day........................but listen................oh no.................?

[robwt] 21/5/2010 09:47

We have been hearing rumours for a while now, one can only speculate if this one has any truth in it.

[sajjad017] 21/5/2010 07:45

infosys 180p bid reported in dail mail see link below

[a0502162] 20/5/2010 11:07

Mmmmmmmmmmmmm...........................not too good then!!

[miata] 20/5/2010 10:47

George Osborne, the chancellor, announced on Monday that the Treasury, under the new chief secretary, David Laws, would review every spending decision taken since the new year, claiming that Labour had been "completely irresponsible" in its last months in government.

An estimated £11bn of government IT projects that were reported before the election have now been specifically picked out by the Treasury.

[a0502162] 19/5/2010 08:07

Now you have the chance to buy a few more!!