Feeds

CSC prepares for takeover bids

And slashes European operations

The Power of One Infographic

The board of CSC are mulling approaches for a sell off. A restructuring plan was also announced, with 5,000 jobs set to be shed, mostly in Europe.

Shares in the IT services company rose more than four and a half per cent on the news.

CEO Van B Honeycutt said: "For some time it has been apparent to us, and to other companies in our industry, that there is excess capacity in certain geographies. This action is designed to enhance shareholder value regardless of any strategic alternatives we may explore."

CSC posted a profit of $810m from revenues of $14.06bn in 2005.

The board expects the cuts to save them $150m in 2007 and double that the following year.

A takeover bid has for CSC has been rumoured for some time. It has faced increased competition from Indian and Chinese providers who can undercut it.

The board has not named their suitors, but Lockheed-Martin, HP, and private equity firms all have reportedly shown interest in an acquisition which the Wall Street Journal has valued at $10.6bn. Analysts say the sale will attract close federal scrutiny because of CSC's billions of sensitive defence contracts.

CSC has employed investment banking giant Goldman Sachs to advise on any deal. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.