Tuesday, July 01, 2008

Hewlett-Packard clears U.S. hurdle to EDS purchase

Hewlett-Packard cleared an antitrust hurdle in its $13.2 billion purchase of Electronic Data Systems. A waiting period under U.S. law passed without any request for additional information from regulators, Hewlett-Packard said Monday. This indicates there's no opposition to the deal. The purchase would more than double the computer maker's revenue from services, challenging IBM. The transaction is HP's largest since the $18.9 billion takeover of Compaq Computer, led by Chief Executive Mark Hurd's predecessor, Carly Fiorina. The acquisition still requires approval from EDS investors and European antitrust authorities, Hewlett-Packard said. HP will pay $25 a share in cash, or 33 percent more than EDS's closing price May 9, before the companies said they were in talks.