Snapdeal board turns down acquisition offer of worth $850 million from Flipkart

 In a recent buzz, it is been ascertained that E-commerce giant Snapdeal's board has certainly have turned down a takeover offer of US $800-850 million (around Rs 5,500 crore) from bigger e-commerce opponent Flipkart.

According to sources close to the development, the giant Flipkart has finished the due assiduousness process and has also made an offer of US $800-850 million to buy Snapdeal.

However, it is been said that the offer was being discarded by the Snapdeal's board as they felt that the amount undervalues the company as the due diligence report is clean.

"The first offer has been rejected but talks are still on. It is an ongoing discussion," said one of the sources.

However, the giants Snapdeal, SoftBank and Flipkart refused to comment. SoftBank, the Snapdeal's largest investor, has been actively mediating the sale for the past few months. The board also has depiction from Snapdeal founders (Kunal Bahl and Rohit Bansal), NVP and Kalaari Capital.

Sources said Ernst & Young, which was cord in by Flipkart to carry out a due diligence on Snapdeal, offered its report a few days ago, following which the offer was made.

The deal between the giants Snapdeal and Flipkart, if finished, would blot the biggest acquisition in the Indian e-commerce space.

Once regarded as one of the chief contender in the Indian e-commerce space, over the years Snapdeal has seen losing its grasp amid strong competition from Amazon and Flipkart.

As evaluated to a assessment of about US $6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about US $1 billion.