Mumbai: Software major Wipro is expected to place a bid to acquire French consulting firm Capgemini by January-end next year, reports quoting investment banking sources said.

The bid, expected to be close to €48 per share, would value Capgemini Europe's largest computer consultancy at $6.4-7 billion.

Reports said bankers from Citigroup and HSBC have been holding hectic negotiations with Wipro's senior management on strategies for financing the deal.

The reports, however, were not independently verified by either Citigroup or HSBC. Capgemini also denied having any contact with Wipro.

The acquisition of Capgemini would give Wipro a strong foothold in the consulting business. Capgemini's strong presence in North America would also help Wipro to insulate itself from the weak dollar.

Paris-based Capgemini has operations in North America, northern Europe & Asia Pacific and central & southern Europe.

The company, with 75,000 employees, is also active in the Indian market where it is mainly engaged in information technology, management consulting and professional services.

Capgemini shares rose following the newspaper report. The company's shares were the top gainers on France's benchmark CAC-40 index, rising as much as 7.3 per cent to an intraday high of 43.70 euros – its highest since early November. The stock later pared earlier gains, but were still up 4.8 per cent at 42.65 euros by 0925 GMT.

Speculation has been rife for several months about a possible bid by Wipro, as well by larger rival Infosys Technologies for Capgemini.

Capgemini said in July it was not planning to sell its IT consulting arm and that it had not been in contact with Infosys. The French group itself bought an Indian software firm, Kanbay, in 2006.

Indian software companies are looking for overseas acquisitions, especially in Europe, to help offset a stronger rupee and a skills shortage at home, and to service clients outside their English-speaking core market.

In August, Wipro bought US-based business process outsourcing services provider Infocrossing for approximately $600 million (Rs 2,400 crore).