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PeopleSupport, Inc. (PSPT) Rejects Acquisition Proposal from IPVG and AO Capital

PeopleSupport, Inc. (PSPT), based out of Los Angeles, California, is an offshore business process outsourcing (BPO) provider that offers customer management, transcription and captioning as well as additional BPO services. The company has centers in the Philippines, Costa Rica and the United States and its services are designed to reduce costs, improve performance and increase revenues by delivering high quality, value-added, multilingual voice and text services.

A majority of the company’s services are performed in the Philippines where People Support is one of the largest outsourcing companies, employing approximately 8,400 college-educated, fluent English speaking personnel.

The company announced recently that its Board of Directors were unable to evaluate and rejected the revised unsolicited proposal made by IPVG Corp. and AO Capital Partners to acquire PeopleSupport in an all-cash transaction at $17 per share. The proposal was rejected because IPVG and AO Captial were either unwilling or unable to provide any evidence which would have enabled PeopleSupport to assess the viability of the proposal or the entities’ ability to fund the purchase price for the transaction proposed.

According to Lance Rosenzweig, the company’s chief executive officer and chairman, PeopleSupport was prepared to seriously consider the proposal and the Board requested customary information to aid in the decision. Despite numerous requests and submitting to those companies a non-disclosure agreement that would keep such information confidential, IPVG and AO Capital still did not provide any evidence that they could obtain sufficient financing for the proposed transaction.

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