PARIS (Reuters) – Activist hedge fund Elliott tried to extort a higher bid from a French Improvement to get Altran, saying: “why, of course the offer undervalued the company, under which the administrator does have an interest.
FILE PHOTO: the logo of The Altran has been pictured at the World Nuclear Exhibition (WNE), the trade fair event for the global nuclear community in the West of Paris, France, on June 27, 2018. REUTERS/Benoit Tessier/Photo File
There has to be a stake of just over 10% at Altran, through shareholders ‘ equity derivative financial instruments. It has been said that he thought it was a software consultancy for Capgemini’s € 14 per share, or 3.6 billion euros ($4 billion) bid for rival Altran was too low.
He stated, Wednesday, that the other offerings in the industry, lead to higher insurance premiums.
“She believes that the price of the bid, it is neither reflecting Altran’s net asset value fair value, nor is it an adequate premium for control, Elliott said in a statement.
Improvement is immediately dismissed Elliott’s statement.
The hedge fund, which has built a reputation for its activities in the United States, has caused waves last year when it turned out to be a stake in the French drinks maker Pernod Ricard.
In France, it is not unusual for a large company with stakes to be held by households or the government, and, in the past, this has proven to be a deterrent to activist investors. However, some funds are beginning to look past it and begin to interfere with what they perceive as a welcoming business environment.
Capgemini Chief Executive Paul Hermelin told Reuters in an interview this week that the company would be due to the high price tag. He reiterated that position on Wednesday, in comments to the French news website Boursorama.
He had also expressed confidence that the Improvement would be in order for a 50.1% Altran shareholders behind the deal.
There is nothing to stop One from increasing its stake in Altran, a source familiar with the matter have said, though, it is not clear whether it would be.
She does not say what the price was, it was, however, the fund is of the opinion that, at $ 20 per share, the deal would still be the creation of value for the Improvement, the source added.
One of which is largely back to back with a combination of Improvement and Altran – it is also the objective of Altran management role in the validation of the award of the tender to the effect of a potential conflict of interest.
The Chief Executive, Dominique Cerutti was the payment of a bonus is linked to the former shareholder, Apax ners and the sale of the shares at a certain price, regulatory filings show. Apax has agreed to sell its remaining investment at Altran, Capgemini for 14 euro a share, in the same month.
A spokeswoman for Altran said the company had followed all the laws and regulations in full in the tender offer, which got the green light from France’s financial regulator.
In late-session trading, Altran shares were little changed at 14.07 euros in Paris, while Capgemini shares were down 1%.
Additional reporting by Sarah White; writing by Matthieu Protard; editing by Elaine Hardcastle