After the close today Hewlett-Packard confirmed that it is in conversations with EDS regarding a 'pact' of some sort. As to the details, and if it is a serious acquisition for the amount of 13 billion, is something we will have to wait to see.
H-P Nears Deal to Buy EDS
By Matthew Karnitschnig
Wall Street Journal Online
Hewlett-Packard Co. was close to a deal to acquire Electronic Data Systems Corp. for between $12 billion and $13 billion, according to people familiar with the situation.
The terms of the deal were not immediately clear but an announcement was expected soon, the people said. EDS, which provides consulting and technology outsourcing services, had a market value of about $9.5 billion, based on Friday's closing price of $18.86 on the New ...
Hewlett-Packard Near Deal To Buy EDS for $13 Billion
By CNBC
12 May 2008
03:20 PM ET
Hewlett-Packard, the world's largest personal-computer maker, is close to a deal to acquire Electronic Data Systems for between $12 billion and $13 billion, the Wall Street Journal reported, citing people familiar with the matter.
An announcement was expected as early as Tuesday, the Journal said.
The report sent EDS shares soaring, while HP shares plunged.
The move is aimed at boosting Hewlett-Packard's competitive position against rival International Business Machines as a provider of services such as tech consulting and customer support, the Journal said.
The transaction could spark further large deals in the technology sector as cash-rich mature companies such as Hewlett-Packard look to acquisitions for growth, the paper said.
Neither HP nor EDS had immediate comment.
Story at CNBC
