View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 14, 2005

CSC takeover talks stall

The proposed takeover of IT and business process outsourcing giant Computer Sciences Corp by Lockheed Martin Corp and a group of private equity investors has stalled because of disagreements over how to structure the deal, according to a report.

By CBR Staff Writer

The Wall Street Journal claims that the Bethesda, Marylandbased company has agreed a price of $65 per share, valuing the company at around $12bn, a 23% premium on its share price at the end of last week. Lockheed only wants to buy CSC’s government business which makes up about a third of CSC’s $14.1bn in annual revenue, so private equity firms Warburg Pincus, Texas Pacific Group, and Blackstone Group are on hand buy up the rest. However, talks have stalled because CSC wants to sell its entire business to Lockheed, rather than have two transactions and deal with the private equity groups directly.

The paper points out that this leaves substantial risk with Lockheed, and it could be lumbered with parts of CSC it does not require if it is unable to subsequently close a deal with the investment groups.

Despite the hitch, shares in CSC increased by more than 4% in early trading yesterday, with investors more convinced that the parties are serious about a transaction.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU