HP Looks To Buy EDS

By Digital Trends Staff Published October 25, 2009

The story broke first in the Wall Street Journal, which reported that computer maker Hewlett-Packard was in talks with IT company Electronic Data Systems (EDS) to buy the company for between $12-13 billion.

That gave a sharp boost to EDS shares, which rose 27.9% – although those of HP dropped 4.7% at the news.

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Once markets had closed, however, HP admitted in a statement that the story was true:

"HP today confirmed that it is engaged in advanced discussions with Electronic Data Systems Corporation regarding a possible business combination involving the two companies."

The speculation is that the deal could make HP a major player in the IT services market, something they’ve been trying to crack for some time.

Digital Trends Staff

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