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Selected Company:
Convergys Corp. (CVG)  - Industry:  Business Support Services
Status: Active
Quote Last: 12.67 Day's Range: 12.63 - 12.75 Business Description:
Convergys Corporation. The Group's principal activity is to provide solutions that drive more value from the relationships clients have with their customers and employees. It turns the everyday interactions into a source of profit and advantage for their clients. Its combination of domain expertise, operational excellence and innovative technologies has delivered process improvement and actionable business insight to clients that span more than 70 countries and 35 languages. It operates through three segments: Customer Management: Provides outsourced customer care solutions as well as professional and consulting services to in-house customer care operations. Information Management provides convergent rating, charging and billing solutions for the global communications industry. HR Management provides human resource business process outsourcing solutions and learning solutions. Its facilities are located in the United States, Canada, Latin America, Europe, the Middle East and Asia.
Change: -0.14( -1.09%) 52wk Range: 5.94- 13.09
Open:  12.75 Volume: 433,140
Bid: 6.41 Alpha: -0.13
Ask: 6.43 Beta: 1.37
Market Cap: $1,607,368,644 Div & Yield: 0.00


Activist Engagements
Select an activist
  Activist 13D Date Avg Cost % of TSO Status  
Select JANA Partners, LLC 7/25/2008 $15.17 6.60 % Live Activist Profile



Selected Activist:
JANA Partners, LLC

Type of Activism
Level of Activism
Corporate Governace
Change in Board Composition
Settle with Company
Director of Company

Investment Thesis

The Company has three business lines. First and primarily, they have a leading call center business that is one of the biggest in the world in terms of scale. This business has historically underperformed its peers in terms of margins and is part of a highly fragmented industry that has shown significant synergies through consolidation. Second, they have a telecom billing business that has been shrinking because of legacy contracts that are expiring, but there are many nascent international clients that should lead to growth in this business. Third, the Company has an HR outsourcing business that has been a huge drain on cash flow over the past seveal years. The investment thesis is (i) that the Company will be able to increase its margins in the call center business and grow through acquisitions while also cutting corporate overhead, (ii) that the telecom business will stop declining and start growing from the international business and (iii) the HR business will shrink or be sold with no additional capital being devoted to it. Additionally, the Company has a joint venture with AT&T in Ohio that contributes $40 million in anual cash flow that is not included in its EBITDA. JANA initially filed a 13G and invested as a passive investor. They converted to a 13D because of discussions they had with the Company but has never been confrontaitional. They ultimately were given two Board seats by the Company and they signed a standstill agreement, further indicating that they are working with a management they like.


13D Monitor Reports

Filing Type Date Filing Info
13D Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,470,393,738 5,244,181 12,221,975 9.90 % 15.98 11.90 0.00
7/25/2008 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
00 7.06 % -8.92 % 2.10 %
Item4
JANA initially reported its investment on a Schedule 13G filed on April 10, 2008. JANA initially acquired the shares for investment in the ordinary course of business because it believed the shares were undervalued and represented an attractive investment opportunity. Based on its evaluation of the Company's July 23, 2008 second quarter earnings announcement, which included a reduction in guidance for 2008 and which was followed by a significant decrease in the Company's closing share price, JANA determined to file this Schedule 13D to reserve its right to take steps to bring about changes to increase shareholder value which may include changes in the board composition, strategy and future plans of the Company. JANA has engaged in constructive dialogues with the members of the Company's Board and management and hopes to engage in future constructive dialogues including regarding such potential changes to increase shareholder value. Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,773,757,440 605,000 13,786,675 11.30 % 15.75 14.56 0.00
8/27/2008 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
01 -12.50 % -10.62 % -0.99 %
Item4
N/A Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,828,578,240 1,491,605 15,278,280 12.50 % 15.72 15.01 0.00
9/17/2008 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
02 -15.12 % -5.60 % 6.84 %
Item4
N/A Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,433,868,480 1,190,119 16,468,399 13.52 % 15.48 11.77 0.00
10/20/2008 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
03 8.24 % 16.26 % 33.27 %
Item4
N/A Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,002,161,860 N/A 17,035,512 14.00 % 15.17 8.21 0.00
2/5/2009 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
04 55.18 % 35.44 % 52.56 %
Item4
On February 5, 2009, JANA and the Company signed a Settlement Agreement providing that: (i) JANA Managing Partner Barry Rosenstein, Technology Value Investors CEO and former Alltel COO, Jeffrey H. Fox, and one independent director to be mutually agreed upon would be appointed to the Board; (ii) JANA would agree not to take certain actions from the date of the Settlement Agreement until the earliest of: (a) six months after the Company's 2010 annual meeting of shareholders, (b) December 31, 2010 and (c) thirty calendar days prior to the shareholder notice deadline for nominating a director for election at the Company's 2011 annual meeting of shareholders; and (iii) if requested by JANA, one additional director designated by JANA and one independent director to be mutually agreed upon would be appointed to the Board at the Company's 2010 annual meeting of shareholders. Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,239,027,600 -5,000,000 12,035,512 9.80 % 15.17 10.10 0.00
5/6/2009 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
05 26.14 % 24.59 % 34.10 %
Item4
N/A Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,150,700,880 -1,457,737 10,577,775 8.60 % 15.17 9.38 0.00
6/3/2009 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
06 35.82 % 22.95 % 29.19 %
Item4
N/A Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,291,153,500 -2,459,357 8,118,418 6.60 % 15.17 10.51 0.00
8/6/2009 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
07 21.22 % 14.90 % 19.55 %
Item4
N/A Download Report


Filing Type Date Filing Info
13D/A Market Cap. Shares Purchased Total Holdings Total Holdings (%) Avg. Price Stock Price Dividends
Filing Date 1,383,412,500 N/A 8,118,418 6.60 % 15.17 0.00 0.00
12/28/2009 Returns since Filing Date
Amend. Nº Filing Return S&P NASDAQ
08 -16.04 % 1.58 % 2.96 %
Item4
On December 23, 2009, the Company and Jana amended the Settlement Agreement dated February 4, 2009 by and among Jana and the Company. The Amendment extends the date from January 1, 2010 until February 1, 2010 for Jana to request that 2 additional directors be appointed to the Board not later than 30 days prior to the Company's 2010 annual meeting. Download Report


Exited Informartion
Exit Type Exit Date Exit Total Holdings Exit Total Holdings (%) Exit Avg Price
LIVE LIVE LIVE LIVE 12.74


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Letters and Agreements

Date Type
2/5/2009 Settlement Agreement View
12/29/2009 Settlement Agreement View

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