Business outsourcing firm PeopleSupport Inc. continues to weigh a $355 million acquisition proposal from Philippine outsourcing firm IPVG Corp. and Asian private equity firm American Orient Capital Partners Ltd., though there are indications it would oppose a buyout.

PeopleSupport said Dec. 6 that it is still reviewing the unsolicited offer, and while it expects to conclude soon, it would not do so before the deadline of the following day that IPVG and AO Capital set.

Though based in Los Angeles, PeopleSupport's largest operations are in the Philippines, where it employs 8,400 of its 9,000 workers. The company performs a variety of customer management services for businesses.

The $15 per share cash offer, made Nov. 30, represented an 18% premium to PeopleSupport's stock price of $12.72 before the announcement was made, though it is far below its 2007 high of $24.41, reached in February. Its shares suffered in March after the company missed its fourth-quarter 2006 numbers and reduced guidance for 2007.

David Scharf, managing director at JMP Securities LLC in San Francisco, said he believes the $15 offer "fully values" PeopleSupport but is not sure the company agrees.

"Given that the company went to lengths to put in a poison pill earlier, and the shares are off considerably from their highs, like most managements they probably believe the offer is not adequate and it's quite possible they recommend shareholders not support it," he said.

PeopleSupport enacted its stockholder rights plan in August, soon after New York hedge fund Galleon Group disclosed it owned 24% of the company. Galleon on Dec. 5 sent a letter to PeopleSupport insisting the company conduct an auction to solicit competing proposals. It also urged PeopleSupport to remove the poison pill so the hedge fund could potentially participate in the IPVG's proposal. Galleon said it was open to including the conversion of its interest in PeopleSupport for an equity stake rather than cash, which it said could allow the potential buyers to offer a higher price for the company.

A spokeswoman for PeopleSupport would not comment.

For the first nine months of 2007, PeopleSupport reported net income of $14.1 million on revenue of $104.9 million, up from net income of $10.2 million on revenue of $79.1 million for the same period in 2006. The company has been affected by weakness in the dollar, and until recently had not taken steps to hedge itself against the currency's declines.

In 2004 PeopleSupport was involved in a hoax in which it allegedly received a $14 a share offer from a company backed by an Indian businessman. The company determined the offer was not legitimate.