PeopleSupport plunges 19% as Essar asks to push out merger

PeopleSupport Inc. (Nasdaq:PSPT) plunged 19% this morning after announcing that Essar Services has requested to delay the closing of its previously announced acquisition of PeopleSupport.

In a statement issued before the bell this morning, Los Angeles, Calif-based PeopleSupport said it is currently evaluating the request.

Essar Services has asked PeopleSupport, a provider of offshore business process outsourcing, to schedule the closing and effective date of the deal for no later than Oct. 31, 2008.

The deal, originally announced in early August, is valued at $250 million.

Essar Services is actually a subsidiary of Indiaʼs Aegis BPO, which would be the actual acquirer.

By late morning, PeopleSupport is at $9.71, down $2.30 from Monday's close. The stock has ranged from $6.77 to $15.25 during the past 52 weeks.

For detailed price information and news stories on PeopleSupport, click PSPT.

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