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CGI shares slip on report that Washington will end firm's Obamacare contract

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(Globalpost/GlobalPost)

MONTREAL - Shares of IT services provider CGI Group fell 2.7 per cent Friday afternoon after published reports said the Obama administration will end the Montreal-based firm's contract for the problem-plagued health-care website.

The Washington Post newspaper and Bloomberg, citing unnamed sources, said the U.S. government is preparing to sign a 12-month contract worth about US$90 million with Accenture.

CGI Federal's contract is slated to expire in February but could have been renewed for one or two years.

On the Toronto Stock Exchange, shares of CGI (TSX:GIB.A) fell 95 cents at C$34.30 in early afternoon trading.

The Post said the government acted after concluding that CGI had not been effective enough in fixing computer problems in the federal website HealthCare.gov.

CGI could not be reached for comment and Accenture declined to comment on the reports.

http://www.globalpost.com/dispatch/news/the-canadian-press/140110/cgi-shares-slip-report-washington-will-end-firms-obamacare-c