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July 28, 1994

DEC’s TALKS WITH COMPUTER SCIENCE BREAK DOWN

By CBR Staff Writer

Digital Equipment Corp’s negotiations to sell part of its $1,500m-a-year systems-integration and consulting business to Computer Sciences Corp ended unsuccessfully late last week, industry insiders told the Wall Street Journal: Robert Palmer hinted after the figures announcement that the company may have completed its major asset sales and that the sale of part of its disk drive unit will be the only one with a significant revenue impact; other pending sales or partnerships would aim to cut costs or capital spending or have only a modest revenue impact, he said; he repeated the company’s commitment to the systems integration business; the talks with Computer Sciences reportedly down over price and over which parts of the business could be separated and sold.

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