News & Observer | newsobserver.com | Hewlett-Packard in talks about acquiring EDS

Published: May 13, 2008 12:30 AM
Modified: May 13, 2008 04:02 AM

Hewlett-Packard in talks about acquiring EDS

 

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AUSTIN, Texas - Hewlett-Packard said Monday it is in talks to acquire Plano, Texas-based Electronic Data Systems in a deal that some estimate could be worth $13 billion.

HP declined to provide details but confirmed it is in "advanced discussions" with EDS about a "possible business combination." Such a deal could dramatically reshape the high-tech industry once again, pushing HP further in the business of technology services and closer into competition with IBM. It also could potentially hurt Dell, an HP archrival that has had a close relationship with EDS that has grown from the companies' Texas roots since at least 2000.

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