Wipro eyes Capgemini

By SiliconIndia   |   Friday, 28 December 2007, 08:00 Hrs
Printer Print Email Email
Mumbai: According to investment banking sources New Year may witness two big acqusition by Indian firms. Wipro could become a strong contender to acquire French consulting firm Capgemini. The company is likely to place a bid by end of January 2008. Tatas would emerge as the preferred bidder for Ford's iconic Land Rover and Jaguar brands.

Bankers have been holding hectic negotiations with Wipro’s senior management on strategies for financing the deal. The bid could be close to Euro 48 per share, valuing Capgemini at $6.4 - 7 billion. Wipro's interest in the French company has been in the air for quite sometime and the buzz is becoming louder.

"Details about leveraged buyout (LBO) financing and other options were discussed,"said a banker close to the transaction.

According to analyst raising funds could turn out to be difficult since the U.S. financial markets are still reeling under the sub-prime crisis.

"We would not want to comment on market speculation. Of course, we are interested in larger deals and aggressively looking for inorganic growth options," said Sudip Nandy, Chief Strategic Officer, Wipro.

Meanwhile Capgemini spokesperson Christel Lerouge denied commenting on market speculation.

Paris-based Capgemini has operations in North America, northern Europe & Asia Pacific and central and southern Europe. The company, with 75,000 employees, is also active in the Indian market where it is mainly engaged in information technology, management consulting and professional services.

Wipro opens third industrial
IT major Wipro Ltd on Thursday opened its centre of excellence for Industrial Internet of Things (..
Google's Gboard gets offline
Google is adding an Artificially Intelligent (AI) offline dictation feature on its Gboard keyb..
IBM announces programme
n a bid to recognise the contribution of developers in the open source community, Information ..
Facebook denies cyber attack
Facebook ruled out a cyber attack on its products Whatsapp, Instagram and Messenger, which suf..