Capgemini shares surge as analysts welcome its takeover of Altran

PARIS: 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 per cent in early session trading, having touched their highest level since late April, while Altran climbed 21.6 per cent.

"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 per cent premium over Altran's Monday closing price of 11.47 euros. The combined company would have annual revenues of 17 billion euros.