Wipro Ltd, India's third-biggest software exporter, is expected to bid for France's Capgemini by the end of January in a deal valuing the French firm at up to $7 billion, a business daily said on Monday, citing unnamed sources.
Citigroup and HSBC have been in discussions to finalise a plan before the year-end holidays, it said, citing investment banking sources.
“Details about leveraged buyout financing and other options were discussed,” it quoted a banker close to the deal as saying.
Wipro's bid for Europe's largest computer consultancy firm could be close to 48 euros per share, the paper said. The stock closed at 40.71 euros in Paris.
“We would not want to comment on market speculation. Of course, we are interested in larger deals and aggressively looking for inorganic growth options,” Sudip Nandy, chief strategic officer of Wipro, told the paper.
Speculation has persisted for several months about a possible bid by Wipro, as well by larger rival Infosys Technologies. Capgemini said in July it was not planning to sell its IT consulting arm and that it had not been in contact with Infosys.