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

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
Stranded_ships

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral

Features

STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock
Honest mistake with your licensing? Audit police look at it on a 'case by case basis'