Will Hedge Fund Elliott Accept Only a Small French Profit?
Capgemini has lifted its Altran offer by a derisory amount under pressure from the hedge fund. It would be a huge dent to Elliott’s credibility if it caves.
Not much of a carrot.
Photographer: ERIC PIERMONT/AFPActivist hedge fund Elliott Management Corp. and its French tech consultancy target Capgemini SE face the same test: Do they mean what they say?
Capgemini SE this week buckled to pressure from Elliott and other minority shareholders, raising its bid for local rival Altran Technologies SA. The uplift, half a euro per share, or 4%, is a derisory carrot to tempt refuseniks to accept a deal widely considered cheap. But Capgemini is also wielding a stick: A statement that it won’t make another offer to buy Altran for 18 months if shareholders snub this one. What’s more, if it secures a small majority of the shares, it won’t offer to buy additional stock at above the new 14.50 euros ($16.14) per share bid price over the same period.