The rumour is back again. This time, as i read in www, it’s Wipro that is planning a bid for France-headquartered IT giant Capgemini. In June this year, there were rumours of Infosys making a bid for Capgemini.
Wipro is now reportedly looking at a 60 euro-per-share bid for CapGemini, which will value the IT consulting giant at 8 billion euros.However, Reuters reports that Wipro has denied any comment on the acquisition buzz. “We don’t react to market speculation,” Wipro’s spokeswoman told Reuters. The Economic Times quotes Sudip Nandy, chief strategy officer, Wipro, as saying that “it is market speculation.”Reports, however, suggest that Wipro was indeed in discussions with Capgemini for a cash-plus-stock swap deal. The buzz had its effect on CapGemini share prices which rose 3.7 per cent on Friday.
Wipro’s largest acquisition so far was that of Infocrossing for $600 million.In the case of Capgemini, Wipro will have a huge challenge of managing the integration.
The Bangalore-based company has around 77,000 people while CapGemini has over 80,000 of which 17,000 people are in India. The French company plans to employ over 40,000 people by the end of 2010.
Hmm, anything can happen, it's all just matter of money and market value