Wipro rumored as bidding for CapGemini

India’s second largest IT company, Wipro is rumored to be bidding for the French computer consultancy group’ CapGemini. CapGemini’s share price rose by 3.7 % to hover around 44 euros in the morning trade of Friday on France’s CAC following speculation that Wipro is mulling a 60 euro per share bid for the IT consultancy company. CapGemini’s press relations’ manager Christel Lerouge dismissed the rumor. But interestingly one international media house quoted a trader at a leading US brokerage as saying: “Wipro has been known to be open to inorganic growth.” He is also quoted as saying that the rumored 60 euro a share “ would be quiet expensive, valuing the group around $ 8 billion euro, but not impossible for Wipro”. But according to other analysts CapGemini seems to be a difficult financial proposition for Wipro, it makes more sense for Wipro to buy small and mid sized companies, which Aziz Premji has so far done around the world. The strategy often called as “ the string of pearls”.