|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||1.6000 - 1.6000|
|52 Week Range||1.0400 - 2.0300|
|Beta (5Y Monthly)||1.01|
|PE Ratio (TTM)||30.53|
|Forward Dividend & Yield||0.03 (1.77%)|
|Ex-Dividend Date||Jun 24, 2019|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Capgemini SE picked up some fellow travelers with its 3.7 billion euros ($4 billion) bid for Altran Technologies SA: a large cohort of minority shareholders who refused to accept the French IT group’s offer, including activist-in-chief Elliott Management Corp. Tuesday’s decent results from Altran diminished the prospect of these holdouts selling when the tender process reopens briefly next month.(1) That leaves Capgemini with the most basic form of control over Altran and a big thorn in its side.Having guided that it wouldn’t raise the 14 euros-a-share offer made in June last year, Capgemini flip-flopped at the last minute and added a paltry half euro in January. That helped it secure acceptances of 54%, just above the threshold set for a takeover. Exclude the 11% holding Capgemini had already purchased from private equity firm Apax Partners SAS, and the other shares proffered amount to less than half of the remaining register. That indicates widespread unhappiness with the terms.Elliott has a 15% holding. The precise composition of the remaining one-third of the register is unclear. Many long-term Altran shareholders sold in the seven-month battle, so it’s likely that the “remainers” include merger arb funds. Such investors would be hoping for the chance to get a higher price for their shares in the future than Capgemini was offering. If so, that would make Altran a special case: Arbs don’t normally hang around after extracting a sweetener.A lucrative buyout is some way off. Capgemini said it wouldn’t make an offer to minorities above 14.50 euros a share price for 18 months. A sudden dip in Altran’s performance would make that price more attractive. But there were no shocks in its latest numbers; Altran shares currently trade at just over that level.Capgemini still has good reason to seek 100% ownership. As things stand, it cannot fully integrate Altran but must run it as a separate entity. It will be under pressure to show that it’s not managing operations for its benefit at the expense of other shareholders. It may be able to reap some revenue synergies, but the benefits from the transaction will fall short of their full potential.What has Capgemini achieved? Its shares jumped 8% on the day the deal was announced last year, reflecting the strong financial and industrial logic of combining the firms. Those gains have since evaporated. Capgemini’s stock is now only slightly outperforming the French index.Declarations of victory in this battle, from either side, will have to wait. Elliott and the minorities have a strong negotiating position if Capgemini moves to take full control in 2021. Capgemini has bought a controlling stake in Altran cheaply. As a parting gift from outgoing Chief Executive Officer Paul Hermelin to his successor Aiman Ezzat, it’s better than nothing. But Ezzat has his work cut out to prove he can extract value from this deal with scarcely more than half the shares.(1) Approval for the deal is subject to a court challenge; Capgemini has indicated it will either refile its offer or reopen it to acceptances depending on the outcome.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain's Financial Conduct Authority was fined by The Pensions Regulator for failing to provide complete details to the members of its pension plan, the regulators said on Monday. French consulting and IT services provider Capgemini succeeded in securing 53.6% of Altran Technologies' shares following a tender offer that closed on Jan. 22, the French markets regulator said on Monday. UK government is poised to renationalise the failed Northern rail franchise and remove it from the control of Arriva, part of German state-owned railway company Deutsche Bahn.
French consulting and IT services provider Capgemini succeeded in securing more than half of the capital of smaller rival Altran Technologies, the French market regulator AMF said on Monday, marking a win against U.S. activist fund Elliott. The AMF said Capgemini holds 53.6% of Altran's share capital and at least 53.4% of the voting rights. The group - which faced a tussle with Altran shareholder Elliott over its offer price - had aimed to get the backing from just over half of Altran's investors to pursue its bid.
The firm, which had thus far said its 3.6-billion-euro (3.1 billion pounds) bid for all of Altran reflected a fair value for the target, is now offering Altran shareholders 14.5 euros per each share they hold, compared to 14 euros previously. This represents an addition of 128 million euros to the initial bid, which Capgemini said would be final. Capgemini decided to raise its offer because Altran's shares are already trading above 14 euros on market rumours that the group might be ready to increase its offer, Hermelin said.
Activist hedge fund Elliott would sell its shares in French Altran if software consultancy Capgemini increased its bid for Altran to 18 euros from 14 euros per share, a source familiar with the situation told Reuters on Thursday. The source added that if Capgemini were to increase its bid to that level, French minority shareholders defence group Adam may drop its legal challenge to Capgemini's bid.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Activist investor Elliott Management Corp. said that Capgemini SE’s offer for Altran Technologies SA is inadequate and called the sales process flawed.Elliott, which has built up a position of more than 10% in Altran, believes that a fair value for the company is more than 20 euros a share, based on analysts’ estimates for the company’s future earnings, it said in a statement on Wednesday. The firm had said in an earlier filing that Capgemini’s current offer of 14-euros-a-share, or 3.6 billion euros ($4 billion) excluding debt, undervalues the company.“Altran shareholders are offered an inadequate premium to forgo the company’s promising standalone prospects, despite the huge value-creation potential of the combination,’’ Elliott said in the statement.Altran shares rose 0.2% to 14.07 euros at 10:25 a.m. in Paris. The stock’s gained about 23% since Capgemini’s offer in June.Capgemini’s incoming CEO Aiman Ezzat said at the Morgan Stanley European Technology, Media & Telecom Conference in Barcelona this month that the company’s bid for Altran isn’t going up. The deal was supposed to close this year, but has likely been delayed until 2020 after a shareholder lobby raised objections in a French court.A spokesman for Capgemini said the company doesn’t have any further comment. A spokeswoman for Altran said that they’ve been in touch with Elliott and is aware of its concerns, and that the company believes that the sales process has followed regulations.Read more about the shareholder lawsuit here.The Altran deal will help address an engineering shortage in Europe and the U.S. that’s left tech companies short on employees, Ezzat said. When combined Capgemini and Altran -- also based in Paris -- will be able to help clients in areas such as cloud computing, the internet of things, 5G, and artificial intelligence software, Capgemini’s current CEO Paul Hermelin said in a statement in June when the deal was announced.“There’s much more demand for engineers than there is capacity in the western world,” Ezzat said in Barcelona. “There’s no alternative unless we find a way to automate all the engineering work.”The deal announced in June requires that 50.1% of Altran shares be tendered for the transaction to proceed. Under French law, Capgemini would need 90% of shares to squeeze out the minority holders, making Elliott raising its stake to more than 10% a pivotal consideration.(Updates with Elliott quote in third paragraph. A previous version corrected the timing of an earlier Elliott statement.)To contact the reporter on this story: Amy Thomson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Activist hedge fund Elliott tried again to squeeze a higher offer from France's Capgemini for rival Altran, saying why it thought the offer undervalued the company in which the fund manager holds a stake. Elliott has built up a stake of just over 10% in Altran through equity derivatives. It has already said it thought software consultancy Capgemini's 14 euro per share, or 3.6 billion-euro ($4 billion) bid for rival Altran, was too low.
Software company Capgemini will stick to its bid of 14 euros ($15.43) per share for smaller rival Altran, its chief executive told Reuters, as it tries to fend off pressure from activist hedge fund Elliott for a higher offer. Elliott, which made waves in France last year when it revealed a stake in drinks maker Pernod Ricard, has since built a holding of more than 10% in Altran, regulatory filings show. It has also said Capgemini's 3.6 billion-euro bid from June this year undervalued Altran.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Altran Technologies ("Altran") and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.