Capgemini shares fell sharply on the Paris bourse, after the company said it was not in takeover talks with Indian rival Wipro.
Shares in the computer services firm ended the day down 3.2 per cent to €43.57, while Wipro shares edged up 2.5 per cent to close at 549.3 rupees ($13.93) on the Bombay Stock Exchange, Bloomberg reports.
On December 24, Capgemini shares jumped 11 per cent on a report in the Hindustan Times that Wipro was prepping a €7bn bid for the company, which would value shares at €48 apiece. An offer was expected to be tabled by the end of January, according to the paper’s sources.
Today’s news from Capgemini does not as yet undermine the Indian newspaper’s report. But it indicates that Capgemini is nowhere near the “welcome Wipro with open arms” stage. And as hostile takeovers in the software services sector are rare, it is likely that that an acquisition is on the cards, until it receives the blessing of Capgemini's board. ®