Feeds

CSC prepares for takeover bids

And slashes European operations

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?