|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||108.40 - 111.05|
|52 Week Range||79.80 - 118.00|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||23.40|
|Forward Dividend & Yield||1.70 (1.55%)|
|1y Target Est||N/A|
Hong Kong’s wealthy residents have boosted their cash holdings to multiyear highs as the trade war and political unrest fan fears of recession. Rich individuals in the city are holding close to a third of their total holdings in cash, a level not seen since the 2008 financial crisis, according to consultancy Capgemini. — the advisers that invest the wealth of the super-rich — have also turned to cash, with holdings at 12-14 per cent, according to research from UBS’s wealth management division and data provider Campden Wealth.
U.S. activist fund Elliott does not intend to tender shares it could end up owning in consultancy group Altran Technologies, the target of a takeover bid by Capgemini, according to a regulatory filing on Friday. Consultancy firm Capgemini agreed to buy smaller rival Altran for 3.6 billion euros last month o tap into the fast-growing engineering outsourcing services market. Elliott has bought millions of equity derivatives, according to a filing with French markets watchdog AMF, but does not directly own shares in Altran yet.
Moody's Investors Service ("Moody's") has today placed the ratings of Altran Technologies ("Altran"), a leading provider of engineering and research & development (ER&D) services, under review for upgrade namely the Ba2 corporate family rating (CFR), the Ba2-PD probability of default rating, and the Ba2 ratings on the senior secured credit facilities including the EUR250 million revolving credit facility and the EUR1,380 million term loan both issued by Altran Technologies, and the USD300 million term loan issued by US-based subsidiary Octavia Holdco Inc. The outlook has been changed to rating under review from negative. Today's action follows the announcement on 24 June 2019 that Altran and Capgemini have entered into exclusive discussions whereby Capgemini is to acquire Altran through a friendly takeover.
(Bloomberg Opinion) -- A bidder offers a 650 million-euro ($740 million) premium for a smaller rival and the stock market rewards it by raising its own market value by 1.3 billion euros. No prizes for guessing who got the better side of the deal in Capgemini SE’s agreement to by smaller French consulting peer Altran Technologies SA for 3.6 billion euros in cash. Altran shareholders should ask whether management got the best price.The acquisition makes strategic sense, adding engineering and R&D services to Capgemini’s core IT consulting offer. The buyer’s growth has been less impressive than that of peers lately, and sensible M&A offers the potential for a pick-up.Financially, the transaction looks good value for Capgemini. Altran’s shares collapsed last year after the group revealed a forgery in the Aricent business it acquired from KKR & Co. While the stock had recovered a lot prior to Capgemini’s deal, the damage wasn’t fully repaired. The takeover premium here is a humdrum 22% over Monday’s closing price and a more conventional 30% only when measured over the last three months’ average.A year ago, Altran implied it had the capacity to be generating nearly 600 million euros of operating profit in 2022. Add to that cost savings of around 85 million euros – the middle of the range Capgemini says is achievable – and the total 5 billion-euro investment (including assumed net debt) looks capable of earning a 9% post-tax return inside three years. That should be good enough for Capgemini shareholders. And revenue synergies would only lift this higher.True, this is a relatively large purchase for Capgemini, capitalized at 19 billion euros, so integration could be a distraction. The company’s leverage will shoot up, given the cash paid out to Altran’s shareholders and the target’s existing high leverage following the Aricent deal. But these additional risks are tolerable given the overall logic.As for Altran shareholders, they get an offer valuing the group roughly where Capgemini trades on forward earnings. The target doubtless feels the offer captures the value of its own strategic plan, otherwise it wouldn’t be recommending the transaction. Still, it looks like Capgemini could have afforded to pay more here.Altran shareholders will hope for a counterbid. Accenture may be tempted to look, although the target could be too big, and Capgemini already has backing from shareholders with 11% of the stock. The shares, trading just below the bid, aren’t pricing in a gatecrasher. It would take an activist and full-blown shareholder rebellion to force Capgemini higher.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or 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/opinion©2019 Bloomberg L.P.
Capgemini's shares surged on Tuesday on the back of the software and consultancy company's 3.6 billion euro ($4.1 billion) takeover of smaller rival Altran to create a group with more than 250,000 staff harnessing new technologies. Capgemini hopes to tap into the rising demand from customers for research and development outsourcing, and software and IT developments in industries ranging from telecoms to aerospace. "We are positioning ourselves as a clear strategic partner to assist our clients in taking full advantage of the revolution created by the developments of the cloud, Edge computing, IoT, artificial intelligence and 5G," said Capgemini Chief Executive Paul Hermelin.
European shares extended losses to a third day on Tuesday amid rising U.S.-Iranian tensions and anxiety over Sino-U.S. trade, but strong gains by Capgemini and Altran on a multi-billion-euro takeover deal helped cap losses. Sentiment remained shaky after three weeks of solid gains that have reclaimed almost all of a May sell-off, which generated European shares' worst monthly performance in more than two years. Already subdued in anticipation of headlines from Sino-U.S. trade talks expected over the weekend, sentiment took a further hit after U.S. President Donald Trump signed an executive order imposing sanctions on Iran's Supreme Leader and other top officials.
(Bloomberg) -- Capgemini SE said it will acquire Altran Technologies SA in a 3.6 billion-euro ($4.1 billion) deal in order to win more tech clients and keep up with rivals.Paris-based Capgemini is looking to maintain its position as a major IT consultancy in a consolidating industry, as competitors such as Accenture have been building out their sales from digital projects.Capgemini’s shares rose as much as 8% in early morning trading in Paris Tuesday, the most since October 2011. Altran rose 21% to 13.9 euros, trading just below the 14 euros-a-share offer price.Analysts broadly backed the deal. "We think this deal should bring strong value creation and provides scale that can help Capgemini close the valuation gap to larger rivals such as Accenture," said Neil Campling, analyst at Mirabaud.The 14 euros-a-share cash portion of the deal amounts to 3.6 billion euros excluding net debt of 1.4 billion euros, the companies said in a statement Monday. The offer is a 22% premium to Altran’s closing price on Friday.The proposal is a “positive step, as it looks to significantly expand into R&D and engineering, two areas becoming main growth drivers for IT-outsourcing companies,” said Anurag Rana, a Bloomberg Intelligence analyst. “The deal would enable Capgemini to compete more aggressively with Accenture, which generates more than 60% of sales from digital projects.”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 Chief Executive Officer Paul Hermelin said in a statement.In an interview with Bloomberg TV, Hermelin added that Altran adds "beautiful accounts" such as Intel Corp, Cisco Systems Inc. and Microsoft Corp., but added that the group still needed to develop its business in Asia. The combination of the two companies will result in a group with 17 billion euros in annual revenue and more than 250,000 employees.Hermelin expressed confidence on a conference call Monday that there are no antitrust issues associated with the takeover since “the market is very fragmented.”Still, the companies’ businesses do overlap, as they provide some of the same services to similar industries. Capgemini expects the deal to boost earnings per share by 25% by 2023, from 15% before the transition is completed.(Updated with CEO interview.)To contact the reporters on this story: Nico Grant in San Francisco at email@example.com;Francois de Beaupuy in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Molly Schuetz, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European shares dipped early on Tuesday, as investors shied away from riskier assets in the face of a new round of U.S. sanctions against Iran and doubts over whether Washington and Beijing will make any progress on trade at a G20 summit this week. President Donald Trump targeted Supreme Leader Ayatollah Ali Khamenei and other top officials with sanctions on Monday and Tehran said the sanctions imposed on its top officials permanently closed the path to diplomacy between the countries. A U.S. official also said on Monday that Trump was "comfortable with any outcome" from talks with Chinese President Xi Jinping at the meetings beginning on Friday.
French business consultancy firm Capgemini on Monday said it agreed to buy engineering and digital services company Altran for 3.6 billion euros ($4.10 billion)to tap into the fast-growing engineering outsourcing services market. With the acquisition, Capgemini said it hoped to respond to demand from its customers -- companies in industries ranging from telecom to aerospace -- to outsource engineers as well as research and development teams.
(Bloomberg Opinion) -- Expect “Pig-gate” to blow over. UBS Group AG’s ultra-rich Chinese clients are unlikely to desert the Swiss bank for local rivals, whatever the level of outrage over language used by its chief economist in a research report last week.The bank's potential loss of Chinese share-sale mandates isn’t a critical blow: UBS ranks a distant 11th in underwriting Hong Kong IPOs in 2019. (The bank fell behind after a one-year ban by the Securities and Futures Commission over deficiencies in its work on three companies that ran into trouble after listing.) Nor is the loss of bond mandates, such as its exclusion from a sale by state-owned China Railway Construction Corp.Wealth management is different. UBS is vying for a share of a Chinese private-banking market that was worth a record $24 trillion in 2018, according to Boston Consulting Group. The furor among local brokerages over UBS’s use of “Chinese pig” in a report on pork supply and inflation comes just as the Swiss firm and other foreign banks are muscling in on their turf. Switzerland’s Credit Suisse Group AG, Japan’s Nomura Holdings Inc., and Wall Street giants JPMorgan Chase & Co. and Morgan Stanley are among firms that have received approval to expand or are working toward taking majority stakes in China ventures.On top of that, Chinese regulators have cracked down on high-risk wealth management products sold by local banks and brokerage firms. That’s leveled the playing field for overseas competitors, which say their stricter compliance guidelines wouldn’t allow them to offer such investments.Still, it’s outside China where UBS has most to protect. Like all foreign banks, it’s a minnow in the mainland market. By contrast, there’s a treasure trove of Chinese money being managed offshore in cities such as Hong Kong, Singapore and New York, according to a survey by consulting firm Capgemini SE last year. Boston Consulting reckons that market is worth $1 trillion. And here, UBS is hard to beat.At the end of last year, the Zurich-based bank had $152 billion more in assets under management in Asia outside mainland China than Credit Suisse, its nearest rival. Chinese players don’t rank in the top 10 for bankers to well-heeled individuals in the region, according to data from Asian Private Banker.UBS took in an unprecedented $16 billion in net new money in the first quarter, driving its Asia-Pacific assets to $405 billion. Credit Suisse collected the equivalent of $4.4 billion. UBS was also the region’s top equities trading house in the region last year, ahead of Morgan Stanley and JPMorgan, according to data from London-based analytics firm Coalition Development Ltd. It’s been Asia’s No. 1 equities house since 2010. That’s key for high-net-worth individuals looking for ideas to trade on.Money tends to flow to where it earns the most, other things being equal. Also, many clients have bought derivatives from UBS, which can’t be unwound at short notice without heavy penalties. UBS can console itself with the thought that other foreign banks have been able to ride out similar difficulties in Asia. Time is on its side. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Is Capgemini SE (EPA:CAP) a good dividend stock? How would you know? Dividend paying companies with growing earnings...
Global business consultancy Capgemini is launching its first-ever investment fund, with plans to invest up to 90 million euros ($102 million) in early-stage technology companies. Capgemini, which advises global companies on their organizational and technology needs, said its consultancy business would help accelerate the growth of the firms backed by the fund, which would be managed by asset manager ISAI Gestion. "In the digital age, our clients are increasingly embracing open innovation and actively engaging with start-ups," Capgemini Chief Operating Officer Thierry Delaporte said.