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Monday, May 12, 2008
HP bidding for EDS
Hewlett-Packard Co. just confirmed it is talks to buy Dallas-based Electronic Data Systems Corp. - a potential mega-deal in the high-tech industry that would push HP further into the services and consulting business and make it an even more formidable competitor to IBM Corp.
In a statement, HP wouldn’t give any more details and said it won’t comment further until an agreement is reached or discussions are terminated. But - citing unnamed sources - the Wall Street Journal and other news outlets are predicting the deal could be worth as much as $13 billion. Word of the talks sent EDS’ stock soaring, while HP fell.
In addition to reshaping the high-tech services business, the deal also could shake up the companies’ operations around the country. HP and EDS are major employers in Texas, Georgia and Florida (as is IBM Corp., for that matter).
Stay tuned on this one.
