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June 30, 1997updated 05 Sep 2016 12:30pm

DAIMLER BACKS OUT OF CAP GEMINI

By CBR Staff Writer

In a surprise move, Daimler-Benz InterServices AG, or Debis for short, is to end its six year partnership with Cap Gemini Sogeti SA, the French computer services company, over differences in future strategy. Debis is the software and services division of Daimler-Benz AG which took a stake in Cap Gemini as part of its plan to create a pan-European services company in 1995, but the German company will now place its 24.4% stake with international investors in the form of a convertible bond issue. Debis will issue $580m worth of bonds which will be convertible into Cap Gemini shares at a future date. Cap Gemini has also agreed to sell to Debis its 19.6% stake in the software development company Debis Systemhaus GmbH. Earlier this year there was intense market speculation that Debis was to increase its stake in Cap Gemini (CI No 3,081) forcing the company to deny the rumors. Cap Gemini is now looking around for US acquisitions to strengthen its position in the services market. If Daimler had ever acquired Cap Gemini outright, as was continually mooted over the years, Cap Gemini’s US activities would have been restricted by banking laws prohibiting foreign banks from operating commercial companies in the States. Deutsche Bank AG owns more than 25% of Daimler.

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