Wipro bidding for CapGemini

India's number-three software exporter, Wipro will make a bid for France's Capgemini by the end of February in a deal that puts a $6.4 billion to $7 price tag on the company.Shares of Capgemini rose over 9% in Paris trading on the report. Investment advisors Citigroup and HSBC have been frantically trying to finalize a plan for financing the deal before year-end. "Details about leveraged buyout financing and other options were discussed," a banker close to the deal said.

Analysts say Capgemini would give Wipro a strong foothold in the consulting business. “Capgemini has a good presence in Europe and it would help Wipro to insulate itself from the weak dollar earnings,” said one analyst. Another expressed concerns about integration. Paris-based Capgemini has units in North America, northern, central and southern Europe, and Asia Pacific, as well as India. It boasts 75,000 employees.