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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: ashoka who wrote (143)	12/19/1997 9:34:00 PM
From: BM	Respond to of 1673

Andrew Willis on Teleglobe/CGI in Globe & Mail of December 19, 1997 [snip] Long-distance provider Teleglobe held 10.5 million shares in CGI Group, which according to its own press release, "provides end-to-end IT services." In English, this means CGI puts computer networks in place to support every part of your business. These days, the market loves pure stock plays: Teleglobe's stock price didn't get much support from the CGI holding, so the decision was made to turn the CGI stake into cash. In the past, there have been times when the best route for Teleglobe to take would have been selling its CGI stake to a strategic buyer. But despite recent hiccups, yesterday's bought deal for CGI shows the market can outbid a rival company. A syndicate of investment dealers led by Scotia Capital Markets, Levesque Beaubien Geoffrion and Nesbitt Burns wrote a cheque to Teleglobe for its CGI stake that valued shares at $24 each. The brokerage firms promptly sold the stock over to investors. For CGI executives, the bought deal is a big win, as it increases the liquidity of their stock and keeps them independent. CGI's existing shareholders could be forgiven for wondering what hit them, as the flood of shares hitting the market knocked the stock back $1.30 to a closing price yesterday of $23.75. But given CGI's run from $10 in August to a high last week of $26.25, a little volatility is likely to be forgiven.