>>> US After Hours Summary: SURG +7.5%, OXM +7.4%, SIGM +5.8%, LMNR -1

After Hours Summary: SURG +7.5%, OXM +7.4%, SIGM +5.8%, LMNR -1.8%, MFRM -0.8%, URBN -0.2% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: SURG +7.5%, OXM +7.4%, SIGM +5.8%, APIC +3.2%, ONVO +0.2%, CLLS +0.1%

Companies trading higher in after hours in reaction to news: CTIC +8.6% (disclosed an amendment to the Development, Commercialization and License Agreement with Baxter (BAX); milestone payments from BAX were accelerated), WETF +5.7% (to replace QRVO in the S&P MidCap 400), UACL +3.2% (announced the commencement of a modified "Dutch auction" tender offer to purchase up to 1 mln shares of its common stock), SPAN +2.9% (co has been selected as a supplier of consumer bedding products for the a major retailer's seasonal promotion in the fall of 2015), FLT +2.9% (announced the signing of a contract with Uber to provide the Partner Fuel Card), UVE +2.6% (announced the repurchase and retirement of Series M convertible preferred stock), QRVO +2.2% (to replace LO in the S&P 500), AEM +1.3% (reported additional results from the 2015 Phase 1 exploration program at the Amaruq gold project in Nunavut, northern Canada), APAM +1.3% (announced May 2015 AUM of $111.6 bln)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: LMNR -1.8%, MFRM -0.8%, URBN -0.2%

Companies trading lower in after hours in reaction to news: SALT -9.2% (announced public offering of $200 mln of common stock), GPOR -4.8% (announced agreements to acquire additional acreage, associated assets and incremental firm transportation commitments from American Energy Utica), HRTX -3.9% (announced proposed underwritten offering of common stock, size not disclosed), RXDX -3.8% (announced public offering of $75 mln in common stock), NRZ -2.5% (announced the commencement of a public offering of 31,486,146 shares of its common stock; shares being sold by the company as well as selling shareholders), TOF -2.3% (announced that President David Mintz, has successfully underwent surgery and expects to return to his duties this summer), TRN -2.1% (Bloomberg reporting co ordered by a judge to pay $663 mln for defrauding the U.S. government), CMRX -1.5% (announced a $150 mln common stock offering) 

>>> Asian Update

Asian Mid-session Update: China A-Shares battle back despite the MSCI inclusion delay; RBA's Stevens jawbones AUD lower


***Economic Data***
- (AU) AUSTRALIA JUN WESTPAC CONSUMER CONFIDENCE INDEX: 95.3 V 102.4 PRIOR, M/M: -6.9% V +6.4% PRIOR; Biggest decline in a year
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 112.1 v 113.5 prior
- (JP) JAPAN APR MACHINE ORDERS M/M: +3.8% (4-month high) V -2.1%E; Y/Y: 3.0% V -1.4%E
- (JP) JAPAN MAY PPI M/M: 0.3% V 0.2%E, Y/Y: -2.1% (2nd straight decline) V -2.2%E
- (KR) SOUTH KOREA MAY UNEMPLOYMENT RATE: 3.9% V 3.7%E
- (NZ) New Zealand May Credit Card Retail Spending M/M: 1.2% v 0.9%e, Total Spending M/M: 1.4% v -1.2% prior

***Index Snapshot (as of 03:00 GMT)***
- Nikkei225 +0.4%, S&P/ASX -0.2%, Kospi flat, Shanghai Composite -0.4%, Hang Seng +0.4%, Jun S&P500 +0.1% at 2,083

***Commodities/Fixed Income***
- Aug gold -0.2% at $1,175/oz, Jul crude oil +1.0% at $60.77/brl, Jul copper +0.2% at $2.72/lb
- (US) API Petroleum Inventories: Crude -6.7M v -2Me; Gasoline -3.9M v 0e; Distillate +0.04M v +1.5Me
- (SA) Saudi Arabia will supply full contractual volumes to at least 2 Asian buyers in July, unchanged from June, after OPEC's latest output decision - financial press
- GLD: SPDR Gold Trust ETF daily holdings decline 2.98 tonnes to 705.72 tonnes; lowest since Jan 12th
- (US) PIMCO: Lowers Total Return Fund's holding of US Treasuries in MAY from 23.4% to 8.5%
- (JP) BOJ offers to buy ¥70B in JGBs with maturity less than 1-yr, ¥400B in 5-10yr JGBs
- (AU) Australia MoF (AOFM) sells A$700M in 4.25% 2026 Bonds; avg yield: 3.1360%; bid-to-cover: 2.91x

***Market Focal Points/FX***
- Shanghai Composite plummeted by 2% in the opening minutes after MSCI deferred on including the A-Shares in its emerging market index. MSCI added the mainland shares may still be included as soon as a "few important remaining issues" of market accessibility are resolved, remaining on 2016 review list for potential inclusion. MSCI will also continue to work with CSRC on resolving those issues. Shanghai Composite entered its midday break well off the lows however, with technically key 5,000 level and 1-month low holding firm. Investors will look ahead to the release of China's May industrial output / investment / retail sales data later in the session and implications for policy expectations from the PBoC going forward. Earlier, PBoC researcher lowered China's 2015 GDP target to 7% from 7.1% and also cut CPI target to 1.4% from 2.2%.

- Nikkei225 is up 0.5% returning from break, recovering some ground from steep losses in yesterday's session. BOJ Gov Kuroda reiterated the central bank is prepared to adjust policy as needed, and even though trends are improving they are still only halfway to reaching target. Kuroda did endorse the recent trend of weaker yen, noting FX trend has not had negative effects on overall economy thus far. In Japanese economic data, PPI was slighlty higher than expected and leading indicator machine orders rose at their best rate in 4 months, leading the cabinet office to upgrade its assessment on the sector.

- AUD/USD traded sharply lower, falling some 70pips from the highs below $0.7640 on comments from RBA Gov Stevens. After most recent surprisingly neutral RBA policy statement, Stevens said the central bank is still open to possibility of further easing, forecasted inflation to remain low, and affirmed support for lower exchange rate. Also of note in Australia, Westpac Consumer Confidence index fell by its biggest margin in a year, falling 6.9% m/m to 95.3.

***Equities***
US equities / ADRs:
- QRVO: To be added to S&P500 index, replacing Lorillard; WETF to replace QRVO in the S&P400 index; +2.6% afterhours
- REGN: FDA advisory panel votes 13 to 3 in favor of risk profile for cholesterol drug Praluent, developed by Regeneron and Sanofi; -2.7% afterhours

Notable movers by sector:
- Consumer discretionary: Seven West Media SWM.AU +1.4% (reaffirms guidance)
- Financials: Franshion Properties 817.HK +0.3% (May result, share placement); GF Securities Co 000776.CN -0.7%, China Galaxy Securities 6881.HK -1.3% (tighten margin rules); SRE Group Ltd 1207.HK -4.6% (MOU with Poly Real Estate, Chairman under custody); Tong Yang Life 082640.KR +3.2% (approval for stake purchase); Greenland Hong Kong 337.HK +9.9% (YTD result)
- Energy: China Gezhouba Grou 600068.CN +4.6% (awarded contract); China Shenhua 1088.HK -4.0%, China Coal Energy 1898.HK -2.9% (clarification on merge); Origin Energy ORG.AU +1.1% (further cut capex); Oil Search OSH.AU +3.1% (said to consider divesting)
- Industrials: Jiangxi Ganyue Expressway Co 600269.CN -2.9% (May result); Kia Motors Corporation 000270.KR +3.1% (to begin sales in Mexico)
- Technology: Sony Corp 6758.JP +2.5% (speculation to have launched PlayStation streaming service)
- Materials: Jilin Liyuan Aluminum Co 002501.CN +7.4% (share placement)
- Utilities: China National Nuclear Power Corporation 601985 .CN +44.0% (IPO debut)

>>> GLOBAL INDEXING FIRM MSCI: A-SHARES ON TRACK FOR FUTURE INCLUSION IN ITS BEN

GLOBAL INDEXING FIRM MSCI: A-SHARES ON TRACK FOR FUTURE INCLUSION IN ITS BENCHMARK EMERGING MARKET INDEX 
- Says mainland China share may be included as soon as a "few important remaining issues" of market accessibility are resolved. China A-shares to remain on 2016 review list for potential inclusion in the Emerging Markets Index. 
- To form working group to resolve the remaining issues and could add China A-shares to index outside of the annual review process (i.e. before June 2016)

(BFW) *MSCI SEES INCLUDING CHINA A SHRS IN GLOBAL BENCHMARKS

BN 06/09 21:15 *MSCI TO INCLUDE MSCI PAKISTAN INDEX IN '16 REVIEW
BN 06/09 21:15 *MSCI MAY ANNOUNCE DECISION AS SOON AS ISSUES RESOLVED
BN 06/09 21:14 *MSCI SEES INCLUDING CHINA A SHRS IN GLOBAL BENCHMARKS
BN 06/09 21:14 *MSCI: MAY ANNOUNCE DECISION TO INCL CHINA A SHRS WHEN RESOLVED
*MSCI SEES INCLUDING CHINA A SHRS IN GLOBAL BENCHMARKS
2015-06-09 21:15:26.955 GMT

--JEREMY COOKE

-0- Jun/09/2015 21:15 GMT

FT : Brazil outlines $65bn infrastructure package

Brazil outlines $65bn infrastructure package
Dilma Rousseff stepped up her campaign to rescue Brazil’s flagging economy, announcing an infrastructure package worth almost R$200bn ($65bn) on Tuesday.

Brazil’s president outlined plans to sell to the private sector new concessions to build and operate nearly 7,000km of roads, as well as four large airports and a number of ports and railways. Ms Rousseff said the aim of the package was to “invest to revive economic growth”.
“A very important characteristic of most of these concessions is that they have been offered in response to very clear demand from the private sector,” she said at a ceremony in Brasília, the capital.
The plan, equivalent to about 3.5 per cent of gross domestic product, comes as Brazil’s economy lurches towards recession, with industry contracting and the construction sector reeling from a corruption scandal at state-owned oil company Petrobras, the country’s biggest corporate investor.
Anfavea, Brazil’s national carmakers association, said this week that production would fall nearly 18 per cent this year, which would be the worst downturn since 1998. Carmakers have slashed 9 per cent of their workforce over the past 12 months.
With its credit-fuelled consumption boom exhausted, economists have been calling for Brazil to raise investment, which is among the lowest of the major emerging markets.

Presenting the infrastructure package, Nelson Barbosa, Brazil’s planning minister, noted that production of grains had doubled between 2000 and 2014, airport passenger numbers grew 2.5 times and the number of vehicles on the roads nearly trebled — putting huge strain on creaking infrastructure.
Under the package, Brazil will offer concessions worth about R$66bn for roads to connect soyabean growers of the interior to ports, R$86bn for railways, R$37bn for ports and nearly R$9bn for airports, including for the cities of Salvador, Florianópolis, Fortaleza and Porto Alegre.
The package also highlighted a plan agreed previously with China to build a $40bn “bi-oceanic” railway connecting Brazil with the Pacific through Peru.
The government will also seek to cut subsidised credit by promoting schemes to encourage winners of the infrastructure concessions to issue domestic bonds.
Ricardo Arten, head of APM Terminals in Brazil, welcomed the package, which included port projects that had been announced before. But its success would depend on execution. “That’s our main concern, whether the government will be fast enough in approving projects or doing bids at the right time, because there is no lack of money in Brazil, there are many people, they do want to invest and APM Brazil is one of them,” said Mr Arten.

In the past, the government has tended to bankroll projects via its development bank in return for concession holders agreeing to suppress tariffs and returns — an arrangement that had deterred many investors.
João Augusto de Castro Neves, analyst at Eurasia Group, called the infrastructure plan a “positive step”, particularly the efforts to reduce the dependency on the development bank. “But there will be a lot of hurdles in the near-term,” he added.
João Pedro Ribeiro, economist with Nomura, praised the willingness to open up to the private sector, while noting that the plan was partly a repackaging of a programme announced in 2012. He also said it would face challenges given the fallout from the Petrobras scandal and other funding issues.
Alberto Ramos, economist at Goldman Sachs, said the government should continue to focus on its macroeconomic adjustment plan to restore balance to the budget and cut inflation. “If the adjustment is properly done, growth will follow,” Mr Ramos said.

FT : Emirates Airline warns US against dismantling ‘open skies’ deal

Emirates Airline warns US against dismantling ‘open skies’ deal

Many foreign airlines could face severe challenges flying to the United Arab Emirates if the US chooses to dismantle its open skies agreement with the country, Emirates Airline warns.
Sir Tim Clark, chief executive of the fast-growing carrier, spoke to reporters on Tuesday at the annual meeting of the International Air Transport Association, the main trade body for airlines, whose event in Miami Beach has been dominated by a stand-off between the big three US legacy carriers and their state-controlled Gulf rivals.

American Airlines, United Airlines and Delta Air Lines have asked the US government to consider scrapping the country’s open skies agreements with the UAE and Qatar.
The US carriers claim Dubai’s Emirates, Abu Dhabi’s Etihad Airways and Qatar’s Qatar Airways have together received $42bn in market-distorting subsidies over the past 10 years from their governments, which they allege breach the agreements.
However, Sir Tim said the UAE recognised that an antitrust immunity which underpins many co-operation agreements between western airlines was part of reciprocal arrangements that allowed Emirates to fly to US destinations. Without it, he said, the agreements would be illegal.
“We signed the open skies agreement with the US in 1999,” Sir Tim said. “Two or three years later, antitrust immunity started to appear on the horizon.
“They gained [antitrust immunity] on a co-ordinated schedule and pricing basis. If I had done that with Emirates with any of those airlines, I would have ended up being jailed.”
The UAE had not complained about the change, Sir Tim said. “We didn’t complain because, as far as I’m concerned, all’s fair in love and war,” he added.
Sir Tim went on to say the open skies agreement, which he helped negotiate as part of the UAE team, covered very few of the issues which the US carriers have complained about.
The deal provides wide latitude for UAE-based airlines to operate into the US from other jurisdictions, including a service from Milan’s Malpensa Airport to New York JFK that Emirates launched in late 2013, he said.
Qatar CEO: industry must repudiate campaign against Gulf carriers
Akbar Al Baker, chief executive officer of Qatar Airways Ltd., center, speaks to journalists during a delivery ceremony for Qatar Airways first Airbus A380 at the Airbus Group NV factory in Hamburg, Germany, on Tuesday, Sept. 16, 2014. Airbus Chief Executive Officer Fabrice Bregier , speaking at the Airbus factory in Hamburg, where Qatar Airways Ltd. took delivery of its first A380, acknowledged that interest in the largest commercial airliner has been "soft," with no deals from airlines so far this year. Photographer: Krisztian Bocsi/Bloomberg *** Local

This brought the airline into the lucrative US to Europe market that generates much of US carriers’ revenue.
Many other international airlines were either partly or wholly state-owned and have received subsidies similar to those allegedly given to the Gulf carriers, Sir Tim said.
He insisted that Emirates had received no more than about $200m worth of aid from the emirate of Dubai when it started in the 1980s.
The company now has assets worth $31bn and would be valued in an initial public offering at $60bn-$120bn, he estimated.
The “underlying tensions” that the stand-off between US airlines and Gulf carriers had created could threaten wider international airline co-operation through organisations such as Iata, which deals with safety and other standard-setting issues, Sir Tim said.

>>> ISSI shareholders waiting on Cypress, expecting delay in voting

Deal Reporter

ISSI shareholders waiting on Cypress, expecting delay in voting

* Room seen for Cypress to increase offer
* Wide disagreement on antirust risks in a Cypress deal

Integrated Silicon Solution’s (NASDAQ: ISSI) scheduled special meeting of shareholders is expected to be pushed back as shareholders wait for Cypress Semiconductor’s (NASDAQ: CY) next move, two major ISSI shareholders said.

Shareholders are not prepared to vote until Cypress makes its intentions clear, the first shareholder said.

Cypress could launch a tender offer or increase its bid price to USD 21 a share and the transaction would still make strategic sense, the first shareholder said. A second shareholder agreed that the most logical step for Cypress is to go hostile and launch a tender offer.

Both shareholders said they would support a bid with the highest value.

A special meeting of ISSI shareholders is scheduled for Friday, 12 June, to vote on a Chinese consortium’s bid to acquire ISSI for USD 20 a share.

Institutional Shareholder Services (ISS), the proxy service firm, has recommended against the transaction with the consortium, led by Uphill Investment, noting that “because the emergence of another credible bidder with a higher cash offer and potentially less regulatory risk suggests the terms of the Uphill transaction do not maximize value for shareholders,” according to a report issued on 1 June.

The consortium increased the per share offer from its initial USD 19.25, after rival bidder Cypress offered to buy ISSI for USD 19.75 apiece.

Cypress also upped its bid for ISSI in an unsolicited USD 20.25 a share offer, with ISSI responding on 8 June saying that the companies failed to reach a merger agreement because of disagreement on antitrust provisions.

The major disagreement between ISSI and Cypress was on antitrust risks. ISSI asked Cypress to agree to take all necessary actions to ensure receipt of antitrust clearance, but Cypress declined to include such provisions as part of the merger agreement.

The first shareholder is supportive of Cypress not including the so-called “hell or high water agreement”, since such a clause will leave the two companies with no negotiating power in front of antitrust agencies.

He continued that the antitrust risks argued by ISSI are not real, since a major part of the deal involves the specialty DRAM technology, instead of the SRAM technology, where the size and growth has been declining.

In order to address the potential antitrust concerns in the SRAM market, Cypress offered a “side letter” to license ISSI’s SRAM intellectual property for up to three years on a royalty-free basis and to offer related assistance to any replacement suppliers identified by an ISSI SRAM customer or distributor.

ISSI said in a press release yesterday that a combined company would have a total market share of over 80% of the SRAM market in the US, and the two companies are the only full-suite providers of SRAM globally.

The second shareholder is skeptical of the market share numbers cited by ISSI. ISSI is overstating the market, since embedded and discrete SRAM should be distinct end markets, he said. “But it’s a no-brainer that the deal will go through a bumpy antitrust review process,” he added.

In addition, the company serve different end market, and a combined company would not change the competition dynamic, the first shareholder said, adding that Cypress’s SRAM is designed for server communication, whereas ISSI is for the automotive industry.

The first shareholder also consider a combination of Cypress and ISSI would create a larger and secure supplier for customers, than a company controlled by the Chinese consortium.

The second shareholder said that the ISS would not change the recommendation until Cypress release a response regarding its plan going forward.

ISSI and Cypress declined to comment.

>>> US Close Dow-0.01% S&P+0.04% Nasdaq-0.15% Russell-0.32%

Closing Market Summary: S&P 500 Snaps Three-Day Skid

The major averages ended the Tuesday session near their flat lines with the S&P 500 registering a slight gain (+0.04%) to snap its three-day skid while the Nasdaq Composite (-0.2%) settled in the red.

Equity indices slumped at the start with investor sentiment pressured by the continued lack of progress between Greece and its creditors. The ongoing uncertainty weighed on European markets, but they were able to climb off their lows into the close. Meanwhile, U.S. stocks hit their lows not long before Europe closed for the day before returning to their flat lines.

The ensuing rebound helped stocks turn positive during afternoon action, but the S&P 500 could not overtake its 100-day moving average (2,085), settling below that mark for the second consecutive day. Interestingly, this was the first time that the benchmark index registered back-to-back settlements below the 100-day average since late October.

Seven sectors registered losses, but only telecom services (-0.5%) surrendered more than 0.2%. Meanwhile, the top-weighted technology sector (-0.2%) struggled throughout the day and contributed to the underperformance of the Nasdaq. The tech sector suffered from losses among influential components like Apple (AAPL 127.42, -0.38), Google (GOOGL 542.16, -1.32), and Qualcomm (QCOM 66.84, -0.44) while high-beta chipmakers traded in mixed fashion, which was masked by a 0.1% decline in the PHLX Semiconductor Index. Micron (MU 25.19, -0.73) was a notable laggard, falling 2.8%, after Drexel Hamilton downgraded the stock to ‘Sell' from ‘Hold.'

Elsewhere among cyclical sectors, the consumer discretionary space (-0.1%) underperformed throughout the day with most homebuilders registering losses after Hovnanian (HOV 2.86, -0.31) reported disappointing results with its Chief Executive Officer saying the company had overestimated buyer demand. Shares of HOV fell 9.8% while iShares Dow Jones US Home Construction ETF (ITB 26.27, -0.11) surrendered 0.3%.

Staying on the earnings front, another discretionary component—Lululemon (LULU 68.27, +6.75)—spiked 11.0% after its one-cent beat overshadowed below-consensus guidance.

On the upside, consumer staples (+0.5%) and financials (+0.2%) ended in the lead after overtaking the energy sector (unch), which retreated from its opening high even as crude oil spiked 3.4% to $60.12/bbl. Greenback strength was not a factor as the Dollar Index ended flat.

Treasuries retreated throughout the day with the 10-yr note ending near its low to send its yield higher by two basis points to 2.41%.

Once again, today's participation was below average with roughly 700 million shares changing hands at the NYSE floor.

Economic data included Wholesale Inventories and JOLTS:
  • Wholesale inventories increased 0.4% in April following an upwardly revised 0.2% gain (from 0.1%) in March while the consensus expected an increase of 0.2%
    • Durable goods inventories increased 0.1% in April, down from a 0.5% increase in March 
      • Gains in automotive (1.8%) and machinery inventories (0.7%) offset declines in professional equipment (-2.1%) and metals (-1.2%) inventories 
    • Nondurable goods inventories increased 0.8% in April after declining 0.3% in March with much of the increase resulting from higher petroleum and gasoline prices, which helped boost petroleum inventories by 2.3% in April 
  • The April Job Openings and Labor Turnover Survey showed that job openings increased to 5.376 million from a revised rate of 5.109 million (from 4.994 million) 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Treasury Budget for May (consensus -$85.00 billion) will cross the wires at 14:00 ET.
  • Nasdaq Composite +5.5% YTD 
  • Russell 2000 +3.9% YTD 
  • S&P 500 +1.0% YTD 
  • Dow Jones Industrial Average -0.3% YTD

(ONE) Capgemini: Capgemini launches a capital increase in the context of the fin



Capgemini specified on that occasion that the transaction will be financed by its surplus cash, a capital increase resulting in a dilution of no more than 6% of Capgemini's share capital and non-convertible bonds for the remaining. In this respect, the capital increase launched today, of an amount below the initially announced cap, aims primarily at early refinancing part of the USD 3.8 billion bridge loan implemented in the context of the IGATE acquisition, which is still expected to close in the second semester 2015[2].
BFW 06/09 15:50 *CAPGEMINI: ISSUANCE OF A MAX. NUMBER OF 7M NEW CAP GEMINI SHRS
BN 06/09 15:49 *CAPGEMINI TO RAISE GROSS EU500M THROUGH PRIVATE PLACEMENT
BN 06/09 15:49 *CAPGEMINI STARTS CAPITAL INCREASE BY WAY OF A PLACEMENT
BN 06/09 15:48 *CAPGEMINI: ISSUANCE OF A MAX. NUMBER OF 7M NEW CAP GEMINI SHRS
BN 06/09 15:48 *CAPGEMINI: CAPGEMINI STARTS A CAPITAL INCREASE
BN 06/09 15:48 *CAPGEMINI: STARTS A €500M CAPITAL INCREASE
BN 06/09 15:48 *CAPGEMINI: CAPGEMINI LAUNCHES A CAPITAL RISE IN CONTEXT OF
Capgemini: Capgemini launches a capital increase in the context of the financing of the IGATE acquisition
2015-06-09 15:48:30.609 GMT

Press relations:
Christel Lerouge
Tel: +33 1 47 54 50 71

Investors' relations:
Vincent Biraud
Tel: +33 1 47 54 50 87

 

This press release may not be distributed or sent into the United States,
Canada, Australia or Japan.

 

Capgemini launches a €500 million capital increase in the context of the
financing of the IGATE acquisition

Paris, 9 June 2015 - Following the announcement, on 27 April 2015, of the
project to acquire the American provider of integrated technology and
operations based solutions Company IGATE Corporation, Capgemini launches today
a capital increase by way of a private placement with the issuance of a
maximum number of 7 million new Cap Gemini shares representing approximately
4.2% of the share capital^[1]. The gross proceeds of the share capital
increase would amount to approximately €500 million.

Context of the transaction

On 27 April 2015, Capgemini announced the signing of a definitive merger
agreement pursuant to which, the Group will acquire the company IGATE
Corporation for a cash consideration of $48 per share. The transaction will
amount to USD 4.0 billion and is expected to be accretive to Capgemini's
normalized Earnings Per Share (EPS) of at least 12% in 2016 and 16% in 2017.

Capgemini specified on that occasion that the transaction will be financed by
its surplus cash, a capital increase resulting in a dilution of no more than
6% of Capgemini's share capital and non-convertible bonds for the remaining.
In this respect, the capital increase launched today, of an amount below the
initially announced cap, aims primarily at early refinancing part of the USD
3.8 billion bridge loan implemented in the context of the IGATE acquisition,
which is still expected to close in the second semester 2015^[2].

The acquisition of IGATE should enable the Group to grow its presence in North
America, by far the largest and most innovative technology and services market
in the world, is at the top of the Group's strategic agenda. The combination
of IGATE and Capgemini increases the Group's revenues in the region by 33% to
an estimated USD 4 billion, making North America its first market with
approximately 30% of the pro-forma combined revenues in 2015. Moreover, thanks
to this transaction, Capgemini will increase its competitiveness on all its
markets and expand its services portfolio in key sectors as financial
services.

As a reminder, Capgemini published its first quarter of 2015 revenue
simultaneously with the announcement of the acquisition project. Revenue
increased by 10.5% at current perimeter  and exchange rates over the same
period in 2014 supported by a strong growth in North America where its revenue
grew 33.8% at current perimeter and exchange rates and 11.7% on a
like-for-like basis.

Key features and indicative timetable of the capital increase

The transaction which has been authorized by the Board of Directors on 8 June
2015, consists of a private placement exclusively offered to institutional
investors, with no preferential subscription rights or pre-emptive rights
pursuant to the delegations granted under the 25^th and 26^th resolutions by
the Company's general shareholders meeting held on 7 May 2014 and the
provisions of articles L. 225-136 of the French Commercial Code and L. 411-2
II of the French Monetary and Financial Code.

Bookbuilding starts immediately.

The final subscription price and final number of new ordinary shares issued
are expected to be announced by Capgemini as soon as practicable after the
close of the book building and no later than 10 June 2015 before the opening
of the markets.

The settlement-delivery of the new shares should occur on 12 June 2015.

Capgemini has agreed a lock-up on the shares of the Company, for a period of
90 calendar days subject to certain usual exceptions.

Public information

The transaction is not subject to a prospectus approved by the French
Financial Market Authority (Autorité des marchés financiers) (AMF). Detailed
information on Capgemini, including its business, results, perspectives and
related risk factors appear in the Company's reference document registered by
the AMF on 1^th April 2015 under number D.15-0276, which is available together
with all the press releases and other regulated information about the Company,
at the Company's website (www.capgemini.com).

Financial intermediaries

Morgan Stanley and BNP Paribas are acting as Global Coordinators,
Joint Lead Managers and Joint Bookrunners in the capital increase and
Crédit Agricole CIB and HSBC as Joint Lead Managers and Joint
Bookrunners.

About Capgemini
With more than 145,000 people in over 40 countries, Capgemini is one of the
world's foremost providers of consulting, technology and outsourcing services.
The Group reported 2014 global revenues of EUR 10.573 billion. Together with
its clients, Capgemini creates and delivers business and technology solutions
that fit their needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working, the
Collaborative Business Experience^TM, and draws on Rightshore^®, its worldwide
delivery model.
More information on: www.capgemini.com

Rightshore® is a brand of Capgemini Group.

IMPORTANT NOTICE

This document does not, and shall not, in any circumstances, constitute a
public offering nor an invitation in any jurisdiction in connection with any
offer.

This document does not constitute or form part of an offer or solicitation of
an offer to purchase or subscribe for securities in France. The securities
referred to herein may not be and will not be offered or sold to the public in
France except to qualified investors ("investisseurs qualifiés") and/or to a
limited group of investors ("cercle restreint d'investisseurs") acting for
their own account, as defined in, and in accordance with Articles L. 411-2 and
D. 411-1 to D. 411-3 of the French Monetary and Financial Code.

This document is only being distributed to, and is only directed at, persons
in the United Kingdom that (i) are "investment professionals" falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (as amended, the "Order"), (ii) are persons falling
within Article 49(2)(a) to (d) ("high net worth companies, unincorporated
associations, etc.") of the Order, or (iii) are persons to whom an invitation
or inducement to engage in investment activity (within the meaning of section
21 of the Financial Services and Markets Act 2000) in connection with the
issue or sale of any securities may otherwise lawfully be communicated or
caused to be communicated (all such persons together being referred to as
"relevant persons"). This document is directed only at relevant persons and
must not be acted on or relied on by persons who are not relevant persons. Any
investment or investment activity to which this document relates is available
only to relevant persons and will be engaged in only with relevant persons.

This document has been prepared on the basis that any offer of the new shares
in any Member State of the European Economic Area ("EEA") which has
implemented the Prospectus Directive (2003/71/EC) (each, a "Relevant Member
State") will be made pursuant to an exemption under the Prospectus Directive,
as implemented in that Relevant Member State, from the requirement to publish
a prospectus. Accordingly any person making or intending to make any offer in
that Relevant Member State of securities which are the subject of the
placement contemplated in this document may only do so in circumstances in
which no obligation arises for Capgemini or any of Joint Lead Managers and
Bookrunners to publish a prospectus pursuant to Article 3 of the Prospectus
Directive, as amended by the Amending Prospectus Directive (2010/73/UE) in
relation to such offer. Neither Capgemini nor the Joint Lead Managers and
Bookrunners have authorized, nor do they authorize, the making of any offer of
the new shares in circumstances in which an obligation arises for Capgemini or
any of the Joint Lead Managers and Bookrunners to publish prospectus for such
offer.

This document is an advertisement and not a prospectus for the purposes of
applicable measures implementing Directive 2003/71/EC.

This press release is not an offer of securities for sale in the United States
or any other jurisdiction. Securities may not be sold or offered in the United
States unless they are registered or are exempt from registration under the
U.S. Securities Act of 1933, as amended. Capgemini does not intend to register
any portion of this offering in the United States or to conduct a public
offering of securities in the United States. Copies of this press release are
not being, and should not be, distributed in or sent into the United States.

It may be unlawful to distribute these materials in certain jurisdictions.
These materials are not for distribution in Canada, Japan or Australia. The
information in these materials does not constitute an offer of securities for
sale in the United States, Canada, Japan or Australia.

In connection with the placement, Morgan Stanley, BNP Paribas, Crédit Agricole
CIB and HSBC, and any of their respective affiliates acting as an investors
for their own account, may take up as a proprietary position any Cap Gemini
shares and in that capacity may retain, purchase or sell for their own account
such shares. In addition they may enter into financing arrangements and swaps
with investors in connection with which they may from time to time acquire,
hold or dispose of Cap Gemini shares. They do not intend to disclose the
extent of any such investment or transactions otherwise than in accordance
with any legal or regulatory obligation to do so.

Each of Morgan Stanley, BNP Paribas, Crédit Agricole CIB and HSBC is acting on
behalf of Capgemini and no one else in connection with any offering of the
shares and will not be responsible to any other person for providing the
protections afforded to any of its clients or for providing advice in relation
to any offering of Cap Gemini shares.

The managers involved in the placing and certain of their affiliates, have
provided and may in the future provide various financing, banking, financial,
investment, commercial or other services to Capgemini or to members of the
Group, in exchange for which they have received or may receive compensation.