Europe approves HP purchase of EDS
Shareholder lawsuits settled
In brief Hewlett-Packard has received the blessings of the European Commission to swallow the computer service giant Electronic Data Systems (EDS) without regulatory fuss.
It's also stuffed enough money into the mouths of naysaying investors to get the planned $13.9bn acquisition ready for a shareholder vote. In addition to an EU green light, HP says it has settled the five stockholder lawsuits filed after the massive services merger was announced.
As a part of the deal, HP and EDS have agreed not to close the merger before August 18, 2008. That leaves the EDS third quarter earnings dividend of 5 cents per share amongst its shareholders.
The acquisition has already passed the US regulatory waiting period without a request for further information by the US Justice Department and Federal Trade Commission.
That leaves a few other jurisdictions where HP does business that still need to pass regulatory scrutiny, but it looks like a pretty clear shot to the EDS shareholder voting booth on July 31. ®
EDS Employees are Not Immune...
"Laughing all the way to the bank. I have my shares, and I'm looking forward to the, "here is a sum of money.....now go away" conversation."
If you are an EDS employee, you have no guarantee of a buyout. A few years ago, EDS was laying-off employees with 20+ years of service providing ZERO severance or buyout. If EDS did it once, they can do it again.
If you owned EDS stock for a while, you are currently offered maximum $25 per share by HP. When you purchased the stock long time ago, it was probably $80 to $120 per share (cost to you). You have already lost.
Dont go holding your breath
Talking as one who has been through this.. staturary redundancy limits (which i would not be surprised if those nice chaps from Texas plump to pay) will not buy you much... (9 yrs at £330/yr got me a new TV!)
anon as those copters are circling!!!
Redundo, if only
My T&Cs make me far too expensive to be made redundant. Pity really.