HP looking at EDS for a possible buy out - Navtej Kohli
Navtej Kohli IT blog is the repository of latest developments in IT
industry. HP now wants to buy EDS to take on IBM.
After gobbling up Compaq for $25 billion in 2001, IT giant
Hewlett-Packard is looking at Electronic Data Systems (EDS) Corp for a
possible buy-out.
Media reports puts the deal size could be in the range of $12 billion to $13 billion.
HP and EDS confirmed that they are engaged in advanced discussions on a
possible business combination involving the two companies.
"There can be no assurances that an agreement will be reached or that a
transaction will be consummated. HP does not intend to comment further
until an agreement is reached or discussions are terminated," HP said
in a statement.
Buying Plano, Texas-based $22.1 billion EDS would give HP more tools to
compete against IBM in the lucrative field of technology consulting and
customer support.
