American law firm says Capgemini-iGate sale price too low, investigating breach of duty

WRITTEN BY DNA Web Team | Updated: Apr 28, 2015, 06:13 PM IST

President of the Capgemini company Paul Hermelin gives a press conference on April 27, 2015 at the Capgemini headquarters in Paris. French IT services and consulting company Capgemini said today it was buying New Jersey-based IGATE for $4 billion (3.7 billion euros), boosting its US-generated business to 30 percent of its total activity.

Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits.

American law firm Brodsky & Smith has said that it is going to investigate potential claims against the board of directors of iGate for "possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to CapGemini."

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Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits.

The firm said, "The investigation concerns whether the Board of iGATE breached their fiduciary duties to shareholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether Cap Gemini is underpaying for iGATE." It alleges that analysts peg $55 per share price tag for each iGate share as against $48 per share agreed upon with Capgemini for the sale.

It said, "The transaction may both undervalue iGATE and raises potential conflicts of interests as iGATE co-founders and co-chairmen could collecting more than $1 billion dollars between them."