Cap Gemini SA and Ernst & Young announced on February 29, 2000 that they had reached agreement on the terms and conditions for the $16.2 billion sale of Ernst & Young’s consulting business to Cap Gemini. Under the terms of the agreement, Cap Gemini will issue a maximum of 43.5 million new shares and pay Euro 375 million for the consulting businesses, which are spread throughout the world. Subject to market conditions, up to a maximum of 50 per cent of the Cap Gemini newly issued shares will be sold by April 1, 2001. Of these shares, a minimum of 25 per cent will be sold on closing of the deal, to cover certain tax, pension and other liabilities of the Ernst & Young partners. The remaining shares will be subject to retention and forfeiture agreements over 5 years and any disposals based on an orderly marketing agreement.
For the Canadian portion of the transaction, Doris Stamml and Elizabeth Kiss of Ernst & Young are managing the deal in-house with assistance from Beth DeMerchant and William Charnetski at Torys. Jean-Marc Huot and Kevin Kyte of Stikeman Elliott Montreal represent Cap Gemini, with assistance from Frédéric Harvey on tax, and corporate support from Michel Gélinas and Patricia Brissette.
For the Canadian portion of the transaction, Doris Stamml and Elizabeth Kiss of Ernst & Young are managing the deal in-house with assistance from Beth DeMerchant and William Charnetski at Torys. Jean-Marc Huot and Kevin Kyte of Stikeman Elliott Montreal represent Cap Gemini, with assistance from Frédéric Harvey on tax, and corporate support from Michel Gélinas and Patricia Brissette.
