I just think it is unlikely Sape would be attractive to someone... In the services industry, the major players like Infy, CTSH, Accenture have their game plan already figured out. They are already geographically distributed with centres in India, China elsewhere... apart from reducing (some) competition, i dont see major value gains...
Buying earnings at a PE of 30 and upgrading it to a PE of 50 is not attractive? Gutting the poor operating efficiency of this company and folding it into your own cost structure at minimal incremental cost?
Ah, but you paraphrase incorrectly. Here's ACTUALLY what the Fool said:
"I would imagine another firm might not want to touch it until after its scandal has been resolved, to avoid tarring itself with any liability. But with a semi-successful business operation in place, a cheap stock price, and a clean set of financials, it might look tempting to a larger competitor."
That's a long way from actually saying it HAS a clean set of financials, etc.
No one would touch this issue until the options disaster is cleared up. But the point is very strong. SAPE is floundering because of its lack of execution.
CTSH is a likely suitor. They would benefit from the depth SAPE has in certain sectors. Also would make a bundle folding SAPE into their low cost operating structure, doing away with SAPE's high G&A.
Sape is trading at a PE of 30 (TTM). CTSH is at 50. How SAPEs board can sit by and do nothing when the competition is outgapping them by 20 PE points...I dont know. But post scandal no board member can turn their back on a reasonable offer.