HP to buy EDS?

May 14, 2008

After gobbling Compaq up for $25 billion in 2001, HP is now looking at
Electronic Data Systems (EDS) Corp for a possible buy out.

According to media reports the deal size could be in the range of $12 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.