The Channel logo


By | Drew Cullen 24th December 2007 19:57

Wipro seeks firepower for Capgemini bid

'Hectic negotiations' with bankers

Capgemini shares moved up 11 per cent today on reports that Wipro, the Indian IT services giant, wants to buy the company.

Wipro is in "hectic negotiations" with bankers over financing a deal which would value Capgemini up to $7bn, the Hindustan Times reports. A bid for the French IT services firm is expected by the end of January, the paper says.

Now for the caveats. A $7bn valuation pans out a €48 a share, a nice premium on today's closing price of €45. But as Jonathan Crozier, an analyst with WestLB in London, told Bloomberg, Capgemini shares traded at €59 in April this year, so "48 euros looks a bit opportunistic". Quite.

And, as the Hindustan Times notes, Wipro may find it difficult to raise funds in the wake of America's credit-crunching sub prime loan debacle. ®

comment icon Read 3 comments on this article alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe