HP to buy EDS

MUMBAI, INDIA: After gobbling Compaq up for $25 billion in 2001, HP is now looking at Electronic Data Systems (EDS) Corp for a possible buyout.

According to media reports the deal size could be in the range of $12 to $13 billion.

HP and EDS confirmed that they are engaged in advanced discussions on a possible business combination involving the two companies.

“There can be no assurances that an agreement will be reached or that a transaction will be consummated. HP does not intend to comment further until an agreement is reached or discussions are terminated,” HP said in a statement.

Buying Plano, Texas-based $22.1 billion EDS would give HP more tools to compete against IBM in the lucrative field of technology consulting and customer support.