Capgemini , Europe's largest IT consultancy, said on that it was not planning to sell its IT consulting activities in financial services and retailing.
In an internal note sent to staff in India and North America, Chief Executive Paul Hermelin said "rumors had surfaced in the Indian press" that the group may consider selling these activities. "I strongly deny this as unfounded speculation. Selling such an important activity is out of the question for the Capgemini group and has never been considered," he told staff in the note.
In April, Hermelin told Capgemini shareholders that the group's priorities were boosting profitability, expanding in Business Process Outsourcing (BPO) and integrating the purchase of Kanbay International. The purchase of Kanbay (finalized in February) was supposed to accelerate Capgemini's growth in India and at bolstering its position in finance consulting and in North America.
Shares in Capgemini rose 4% on Thursday after the Times of India reported that Indian software services exporter Infosys Technologies could strike a deal with Capgemini to acquire part of the group's consulting business.
Last week Infosys, which has a market capitalization of $27.6b, said speculation that it was in talks to buy certain European firms, such as Capgemini, was baseless at this point in time.
Nasdaq-listed Infosys has said it was looking for acquisitions in non-English speaking markets such as Germany, France and Japan to accelerate market penetration.