When Hewlett-Packard Corp. (NYSE: HPQ) paid billions for computer services giant EDS in 2008, the reasoning was clear: HP wants to be in the "IBM" business. You know, the one that serves up and retains lucrative computer services contracts that mean much more to any bottom line than razor-thin hardware margins. It appears HP wants to do both.EdsAcquisition posts
FeedHewlett-Packard's recent EDS acquisition strategy becomes more visible
When Hewlett-Packard Corp. (NYSE: HPQ) paid billions for computer services giant EDS in 2008, the reasoning was clear: HP wants to be in the "IBM" business. You know, the one that serves up and retains lucrative computer services contracts that mean much more to any bottom line than razor-thin hardware margins. It appears HP wants to do both.Continue reading Hewlett-Packard's recent EDS acquisition strategy becomes more visible
EDS shareholders want to postpone acquisition by Hewlett-Packard
Shareholders of EDS Corp. (NYSE: EDS) are starting to fidget in their collective seats now that the a shareholder meeting between the company and suitor Hewlett-Packard Corp. (NYSE: HPQ) is scheduled for July 31st. The delay is being brought on by a contingent of shareholders that believes the price H-P will be paying for EDS is, of course, too low.The shareholders claim that the $25 per share price is too low in addition to a provision that doesn't allow the EDS board to accept higher offers, should one be brought forth. Dallas-area law firm Baron & Budd said "With increased revenues over the past 12 months and 2008 projections on track, the shareholders are questioning why EDS is accepting what many experts consider to be an undervalued share price." Since EDS is headquartered in Plano, Texas -- just outside Dallas -- perhaps some heavy-handed Texas shareholders don't want to sell out to a west coast firm? Who knows.
EDS continues to believe the acquisition by H-P is still in the best interests of the company. A combined HP-EDS would have more than 200,000 employees with operations in more than 80 countries. The combination would form a large challenge to business services and consulting company IBM Corp. (NYSE: IBM) as H-P tries to conquer yet another giant after taking the PC sales leadership crown from Dell, Inc. (NASDAQ: DELL) in 2007.
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