HP SET TO CLOSE $13.3 BILLION EDS BUY

The Economic Times

Hewlett-Packard expects to close its $13.25 billion acquisition of Electronic Data Systems on Tuesday but did not give any details on possible job cuts, the Wall Street Journal reported.

In an interview with the newspaper on Monday, HP chief executive Mark Hurd said the company would not disclose financial expectations from the acquisition or details of how many EDS employees might be laid off until a September 15 meeting with stock analysts.

EDS shareholders approved the deal last month. The EDS deal was the result of a decision made over the past three years to fuel growth by focusing on software and services, Hurd said.

It became clear HP’s outsourcing business was too small to get the multibillion-dollar contracts it would need to compete with rivals, he added. The EDS deal will vault HP to second place in technology services, behind International Business Machines.