Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Fouad Nahas who wrote (144)	12/18/1997 10:17:00 PM
From: BM	Read Replies (1) \| Respond to of 1673

The Teleglobe deal in August was a good one for both sides. CGI got a foot into the lucrative insurance outsourcing business in the US, Canda and UK and Teleglobe got out of a business that didn't fit into its core business (telecommunications). Just how valuable the TIS group acquisition will be to CGI in the long term is difficult to quantify today, but there is no doubt in my mind that it's very positive. Note that the TIS revenues (annual revenues estimated at $185M in August) were not included in the recent financial reports and will not be included in CGI's financials until the next quarter. On the other hand, Teleglobe has seen its return for the sale to CGI double to $272M from an original $140M. But now it's time to move on for Teleglobe - they're not in the business of investing in non-core businesses and I would guess that a telecommunications-oriented acquisition is in the works for Teleglobe. Time will tell. In the meanwhile, we note in today's releases that CGI's backlog keeps growing and now sits at $1.45B. In my opinion, Teleglobe's move is neutral insofar as CGI is concerned.