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Neusoft drops offer to acquire DHC

By Wang Xing (chinadaily.com.cn)
Updated: 2009-03-02 14:36

Chinese outsourcing company Neusoft Corporation said it had given up efforts to acquire Dalian Hi-Think Computer Technology Corp (DHC) in a major asset reorganization.

Related readings:  Neusoft eyes merger with Dalian Hi-Think  Neusoft eyes company in Japan or Europe  Neusoft's listing plan on target

Neusoft said in a filing to Shanghai Stock Exchange that DHC had refused its offer on Feb 27 to take over the outsourcing company be-cause of uncertainties brought about by the current economic situation.

The announcement came shortly after Neusoft said last week it planned to acquire DHC, whose business has been severely hit by the economic slowdown.

Neusoft is China's largest outsourcing company, taking up about 7.5 percent of China's outsourcing market. The company had more than 16,000 employees last year and plans to have over 20,000 this year.

Liu Jiren, founder and chairman of Neusoft, said earlier last month that he expected the company's profit to increase more than 20 percent this year despite the global economic slowdown.