Company Description
Selected
Company:
Convergys Corp. (CVG)
- Industry: Business Support Services
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Status: Active
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Quote Last:
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9.42
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Day's Range:
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9.29 -
9.48
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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.
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Change:
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0.02(
0.16%)
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52wk Range:
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4.02-
16.99
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Open:
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9.35
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Volume:
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196,388
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Bid:
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6.41
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Alpha:
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0.56
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Ask:
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6.43
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Beta:
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1.38
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Market Cap:
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$1,171,860,992
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Div & Yield:
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0.00
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Activist Engagements
Select an activist
Selected Activist:
JANA
Partners, LLC
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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 og 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 grain 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.
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13D Monitor Reports
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Filing Type
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Date Filing Info
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13D
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Market Cap.
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Shares Purchased
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Total Holdings
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Total Holdings (%)
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Avg. Price
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Stock Price
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Dividends
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Filing Date
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1,470,393,738
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5,244,181
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12,221,975
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9.90 %
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15.98
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11.90
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0.00
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7/25/2008
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Returns since Filing Date
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Amend. Nº
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Filing Return
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S&P
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NASDAQ
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00
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-20.92 %
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-33.10 %
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-29.64 %
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Item4
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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.
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Filing Type
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Date Filing Info
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13D/A
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Market Cap.
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Shares Purchased
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Total Holdings
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Total Holdings (%)
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Avg. Price
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Stock Price
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Dividends
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Filing Date
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1,773,757,440
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605,000
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13,786,675
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11.30 %
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15.75
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14.56
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0.00
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8/27/2008
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Returns since Filing Date
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Amend. Nº
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Filing Return
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S&P
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NASDAQ
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01
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-35.37 %
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-34.34 %
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-31.76 %
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Item4
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N/A
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Filing Type
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Date Filing Info
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13D/A
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Market Cap.
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Shares Purchased
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Total Holdings
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Total Holdings (%)
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Avg. Price
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Stock Price
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Dividends
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Filing Date
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1,828,578,240
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1,491,605
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15,278,280
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12.50 %
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15.72
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15.78
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0.00
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9/17/2008
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Returns since Filing Date
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Amend. Nº
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Filing Return
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S&P
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NASDAQ
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02
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-40.37 %
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-30.66 %
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-26.37 %
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Item4
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N/A
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Filing Type
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Date Filing Info
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13D/A
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Market Cap.
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Shares Purchased
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Total Holdings
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Total Holdings (%)
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Avg. Price
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Stock Price
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Dividends
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Filing Date
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1,433,868,480
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1,190,119
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16,468,399
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13.52 %
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15.48
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11.40
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0.00
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10/20/2008
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Returns since Filing Date
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Amend. Nº
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Filing Return
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S&P
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NASDAQ
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03
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-17.46 %
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-14.60 %
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-8.15 %
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Item4
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N/A
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Filing Type
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Date Filing Info
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13D/A
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Market Cap.
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Shares Purchased
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Total Holdings
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Total Holdings (%)
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Avg. Price
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Stock Price
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Dividends
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Filing Date
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1,002,161,860
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N/A
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17,035,512
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14.00 %
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15.17
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8.21
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0.00
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2/5/2009
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Returns since Filing Date
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Amend. Nº
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Filing Return
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S&P
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NASDAQ
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04
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14.62 %
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-0.51 %
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5.14 %
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Item4
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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.
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Exited Informartion
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Exit Type
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Exit Date
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Exit Total Holdings
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Exit Total Holdings (%)
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Exit Avg Price
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LIVE
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LIVE
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LIVE
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LIVE
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9.41
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Item 4 Actions Chart
Tooltip:
Letters and Agreements