Wipro likely to bid for Capgemini: report
24 December 2007
Mumbai: Software major Wipro is expected to place a bid to acquire French consulting firm Capgemini by January-end next year, reports quoting investment banking sources said.
The bid, expected to be close to €48 per share, would value Capgemini Europe's largest computer consultancy at $6.4-7 billion.
Reports said bankers from Citigroup and HSBC have been holding hectic negotiations with Wipro's senior management on strategies for financing the deal.
The reports, however, were not independently verified by either Citigroup or HSBC. Capgemini also denied having any contact with Wipro.
The acquisition of Capgemini would give Wipro a strong foothold in the consulting business. Capgemini's strong presence in North America would also help Wipro to insulate itself from the weak dollar.
Paris-based Capgemini has operations in North America, northern Europe & Asia Pacific and central & southern Europe.