ElectronicDataSystems
Latest
HP expects to take $8 billion hit over its purchase of EDS
Normally shake ups in management and earnings outlooks don't really grab our attention. But, buried in the PR for just such moves from HP today was a particularly intriguing tidbit of information. In Q3 the company expects to be hit for $8 billion in pre-tax assets (but not cash) as part of an "impairment of goodwill" charge related to the purchase of Electronic Data Systems. That's in addition to a $1.5 billion charge it'll be absorbing following the layoff of some 27,000 employees in May. While the company has actually raised its earnings outlook for the quarter, we'll have to wait till August 22nd to find out just how much these two charges will affect the bottom line. For some more detail, check out the PR after the break.
HP wants to buy EDS, assure acronym superiority over IBM (update: it's official)
We're not usually too down with enterprise-services action, but it's hard not to notice HP's $12-13B bid to buy out rival Electronic Data Systems. EDS is best remembered for that "Herding Cats" Super Bowl commercial, but things have been rough lately -- the company just posted 62 percent decline in first-quarter profits. Still, EDS remains a leader in technology outsourcing, and HP seems to think that it'll be better able to take down Big Blue's powerhouse services and consulting group if they merge. The deal isn't done yet, but we should know how things go soon.Update: The deal is done. HP confirmed that it's buying EDS for $25 per share or $12.5 billion. EDS will be rebranded, "EDS -- an HP company" in recognition of its own corporate blandness.
