Double or quits

8 January 2020 By Christopher Thompson Follow @CGAThompson

The U.S. activist will not tender its 14% stake in Altran, which the French consultancy wants to buy for $4 bln. Buoyant markets should limit Elliott’s downside if the deal fails. And if Capgemini secures a majority, a legal trial may yet give investors a shot at a higher price.

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Elliott Advisors said on Jan. 8 it will not tender its shares in Altran Technologies to Capgemini, which has made a $4 billion offer for the Paris-listed IT support services company.

The New York-based hedge fund, which holds nearly 14% of Altran, said the current offer “fails to recognise Altran’s true value”.

The French financial market authority, Autorité des Marchés Financiers, has set a closing date of Jan. 22 for Capgemini’s 14 euros per share bid, according to a company statement on Dec. 18.

The move followed a ruling from the Paris Court of Appeal rejecting a request from some minority shareholders to delay the closing date of the tender offer.

L'association de Défense des Actionnaires Minoritaires (ADAM), a group of French minority shareholders which includes Elliott, had lodged a legal challenge to Capgemini's bid, saying there were irregularities in the process. It requested that the closure of the offer be delayed until March, when a decision on that broader proposal is expected.

Capgemini shares were down by 0.5% at 108.85 euros by 0900 GMT on Jan. 8. Altran shares were up 0.3% at 14.14 euros.

Context News

Elliott Advisors said on Jan. 8 it will not tender its shares in Altran Technologies to Capgemini, which has made a $4 billion offer for the Paris-listed IT support services company.

The New York-based hedge fund, which holds nearly 14% of Altran, said the current offer “fails to recognise Altran’s true value”.

The French financial market authority, Autorité des Marchés Financiers, has set a closing date of Jan. 22 for Capgemini’s 14 euros per share bid, according to a company statement on Dec. 18.

The move followed a ruling from the Paris Court of Appeal rejecting a request from some minority shareholders to delay the closing date of the tender offer.

Capgemini shares were down by 0.5% at 108.85 euros by 0900 GMT on Jan. 8. Altran shares were up 0.3% at 14.14 euros.

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