Lots of rumours on the European M&A network that Cap and Atos are either discussing an outright merger or that Cap and it's IB is putting together a takeover offer for Atos.
Cap has underperforming ITO contracts, a good SI and decent MC business. Also it has aspirations in Apps outsourcing and BPO domains.
Atos is like CG a new entity (3-5 yrs old) formed by M&A activity and there synergies from having a portfolio of consulting, SI and outsourcing business have not been realised. Atos has a decent ITO pedigree and recent wins.
Will the proposed merger create shareholder value and (finally) create a European IT services provider that is big and scary enough to take on EDS, IBM, et.al - and win?
Or will it destroy shareholder value, lose customers, deals and talent and make massive cost cuts and layoffs?
My own opinion is not mixed. Ther is a lot of overalapping capabilities that could be culled and underperforming practices/staff rationalised, but I am trying to construct a hypothetical brand and go to market message for this entity - can't find one.