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Wipro says acquisition after 'dust settles'

Indian software services firm Wipro Ltd said on Friday it had done well to drop plans for an overseas acquisition last year and said it would buy only once uncertainty in the market ended.

"Given what has transpired in the US markets...we are better off not doing any deal," company chairman Azim Premji told analysts and reporters in a conference call. "Going forward...we believe no deal is better than a bad deal."

Wipro listed on the New York Stock Exchange last October with an issue of American depositary shares and cited possible acquisitions as a reason to raise cash.

Wipro vice-chairman Vivek Paul told a news conference after Wipro's annual results on Friday that valuations of consultancy firms that Wipro looked to buy had come down.

But at the same time there were customer relationship uncertainties that the acquired firms were expected to bring, he added.

Paul said Wipro wanted to hook the acquired firm's sales engine to Wipro's software delivery, and the purpose would be lost if their sales were not smooth.

"You want the dust to settle a little bit before you do something," he said.

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