Dec. 27 (Bloomberg) -- Cap Gemini SA, Europe's largest computer-services company, fell in Paris trading after saying it isn't in talks with India's Wipro Ltd. about a takeover.

Cap Gemini dropped 1.43 euros ($2.09), or 3.2 percent, to 43.57 euros, after falling as much as 5.7 percent earlier. Wipro shares rose 2.5 percent to close at 549.3 rupees ($13.93) on the Bombay Stock Exchange.

Wipro may offer to buy Cap Gemini for as much as $7 billion, the Hindustan Times newspaper reported Dec. 23, without saying where it got the information. The bid may be made by the end of January, the newspaper said. Cap Gemini stock rose 11 percent on Dec. 24, the biggest gain in almost five years.

Cap Gemini, based in Paris, said after the market closed on Dec. 24 it wasn't in takeover talks with Wipro.

The Times of India reported in July that India's second- largest provider of computer services, Infosys Technologies Ltd., was in talks with at least four companies, including Cap Gemini, for a potential acquisition. Infosys plans to purchase smaller European competitors, B.G. Srinivas, head of the company's operations in Europe, the Middle East and Africa, said in a Nov. 12 interview.

Wipro is India's third-largest software services exporter. Cap Gemini doubled its workforce in India when it bought Houston- based Kanbay International Inc. for $1.25 billion in February, adding clients including HSBC Holdings Plc and Morgan Stanley.

To contact the reporter on this story: Philipp Grontzki in Frankfurt at pgrontzki@bloomberg.net

Last Updated: December 27, 2007 12:10 EST