Shaun Nichols in California, vnunet.com13 May 2008
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HP has announced an interest in buying IT services firm Electronic Data
Systems (EDS.)
EDS is among the largest providers of IT outsourcing in the world, and
specialises in services for large companies.
HP said in a statement that it is in "advanced talks" over a deal with EDS,
but revealed little else on the matter.
"There can be no assurances that an agreement will be reached or that a
transaction will be consummated," the company said.
"HP does not intend to comment further until an agreement is reached or
discussions are terminated."
The Wall Street Journal and The New York Times cited
sources close to the negotiations in reporting that HP would pay $12bn to $13bn
to acquire EDS.
If true, the deal would be HP's most expensive acquisition since paying $20bn
for Compaq in 2002.
A deal between HP and EDS would also bring together two of the so-called Big
Six players in the outsourcing industry, a list which also includes IBM,
Accenture, ACS and CSC.
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