HP gives CSC the eye

Sniffing about

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Potential buyers are sniffing around Computer Sciences Corp after taking a festive break, according to reports.

Blackstone Group, the same private investor that was involved in Lockheed's abortive bid for the services giant in November, is at it again.

This time it appears that HP has been roped in to lead the bid. Or it may rather be the case that there is an orderly queue of suitors wanting to give CSC the once over and Blackstone is the most familiar chaperone.

The San Jose Mercury News reports that the financial community was surprised at these latest preliminary talks, even though CSC appeared to be on heat and HP has shown its desire for large services acquisitions - its last significant flirtation, with Price Waterhouse Coopers, having been rejected. (PWC subsequently gave it up for IBM).

Investors still appear to be interested in seeing a deal done. CSC shares jumped nearly eight per cent on the news yesterday. HP's share price dipped a touch. ®

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