The Channel logo

News

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

Opinion

Trevor Pott

Why aren't you, personally, stopping the moronocalypse?
Star Trek Into Darkness

Chris Mellor

Federation fissiparousness to form co-ordinated divisions
iot_internet_of_things

Chris Mellor

EMC is ahead overall with HDS mounting an IoT catch-up

Features

Lego gandalf by https://www.flickr.com/photos/isherwoodchris/  CC 2.0 https://creativecommons.org/licenses/by-sa/2.0/ attribution sharealike
Why interconnectivity in the cloud is tougher than just stacking bricks
Handing over dollars picture via Shutterstock
Steve Ballmer. Pic:  Aanjhan Ranganathan
Nokia is the biggest write-off yet, but it wasn't the first
Confused computer keyboard
Last Christmas, I gave you my Cloud, the very next day you gave it away