PARIS, June 25 (Reuters) - Capgemini’s shares surged on Tuesday, as analysts welcomed the software and consultancy company’s 3.6 billion euro ($4.1 billion) takeover of smaller rival Altran.
Capgemini shares were up 5.9% in early session trading, having touched their highest level since late April, while Altran climbed 21.6%.
“Not without risk, but creates value nevertheless,” wrote Invest Securities in a note, as it raised its rating on Capgemini to “neutral” from “sell.”
Late on Monday, Capgemini said it would offer 14 euros per Altran share in cash, representing a 22% premium over Altran’s Monday closing price of 11.47 euros. The combined company would have annual revenues of 17 billion euros. ($1 = 0.8776 euros) (Reporting by Sudip Kar-Gupta and Josephine Mason, editing by Louise Heavens)