An Inadequate Price and a Flawed Process
Full materials available at www.FairValueforAltran.com
PARIS & LONDON–(BUSINESS WIRE)–Funds advised by Elliott Advisors (UK) Limited (together “Elliott”), that collectively hold an economic interest in Altran Technologies SA (“Altran” or the “Company”) of over 10%, today published a presentation outlining its concerns with Capgemini SE’s (“Capgemini”) offer for Altran (“the Offer”).
The presentation includes the following key takeaways:
- Altran is an attractive asset and a compelling target for a value-creative combination: Elliott believes Altran offers a rare and highly attractive investment opportunity in the Engineering and R&D services industry, and acknowledges the highly synergistic and industry-transforming nature of a combination with Capgemini;
- An insufficient offer price: At €14.00 per share, Elliott believes the Offer price neither reflects Altran’s intrinsic fair value, nor an adequate premium for control. Altran shareholders are being asked to forgo any participation in the significant value creation that would arise out of the proposed combination;
- A conflict-ridden process: In Elliott’s view, the suboptimal price reflects a suboptimal process, evidenced by a series of material corporate governance failings at Altran that have emerged since the Offer was first announced.
Elliott shares Altran management’s view on the attractiveness of Altran as a standalone entity, and the tremendous value creation that would accrue from a combination with Capgemini. Unfortunately, Elliott believes the Offer price for Altran shareholders is too low. The widespread scepticism on the level of the Offer from the first day of its announcement has only been compounded by revelations on the failings of the Altran Board in recommending this Offer. Altran shareholders should consider all the facts before deciding whether to endorse such a flawed process, and accept an inadequate price for their shares.
Elliott has previously written to the CEOs and Boards of both Altran and Capgemini to express its views, and has now decided to share its analysis publicly.
Elliott’s presentation, along with additional analysis and perspectives are available to view and download today at www.FairValueforAltran.com. Interested parties are encouraged to visit the website to receive additional information.
Elliott Management Corporation manages two multi-strategy investment funds which combined have approximately $38.2 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. Elliott Advisors (UK) Limited is an affiliate of Elliott Management Corporation.
Sarah Rajani CFA
Elliott Advisors (UK) Limited
+44 (0) 20 3009 1475