Cap Gemini said the share issue arose from plans announced in October to acquire Kanbay, a company quoted in the US but based mainly in India, for 1.25 billion dollars (940 million euros) in cash.

"In this context, the purpose of the capital increase launched today is to rebuild the group's room for maneuver and participate to possible future industry consolidation," Cap Gemini said.

After announcing the capital increase, shares in the group showed a loss of 3.30 percent to 45.10 euros on the Paris stock exchange in morning trading.

The French group is to issue 10.3 million new shares at an indicative price of 43.87 euros. The final price will be set between December 6-8 but will not exceed 50.45 euros.

"The gross proceeds of the issuance in the amount of approximately 455 million euros may be increased to around 500 million euros in the event of the exercise of the over-allotment option," the company said.

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