PracticeConsultingErnst & Young partners give thumbs-up to Cap Gemini deal

Ernst & Young partners give thumbs-up to Cap Gemini deal

A secret ballot of partners at Ernst & Young is reported to have given an almost unanimous go-ahead to the sell-off of its management consultancy wing to French heavyweight Cap Gemini.

The Paris-based consulting giant is tipped to announce as early as today the confirmation of the deal with the Big Five firm that will create the world’s biggest IT consultancy, with 58,000 employees and annual revenue of nearly 8bn euros.

The poll of E&Y partners – 98% of whom are thought to have favoured the move – will pave the way for Cap Gemini shareholders to approve the merger in May.E&Y partners could be left with a 36% control of the combined group, the Financial Times today reported, and allow the firm to raise capital for technology investment and pension funds.

It is reported E&Y has been forced by the SEC, the powerful US regulator, to agree to sell Cap Gemini shares held collectively by the firm or by audit, tax and corporate partners within five years.

KPMG forces watchdog move on flotation of consultancy arm

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