IBM seeks buyer for Global Network; corporate data operation could bring sale price of $3 billion to $4 billion
Article Abstract:
IBM has put its prestigious Global Network operations up for sale, according to insiders. Merrill Lynch has been hired to auction the network, which insiders said could command $3 billion to $4 billion. IBM's Global Network, part of its blue-chip services base, prevails in many network contests for reliability and customer service. It is deployed mostly by corporations for services that include connecting distant computers, receiving electronic orders and linking employees to the Internet and E-mail. Assets include 6,000 international employees, switches, modems, routers and 1,375 phone connections. IBM executives decided to sell the network because they want to shed its typical $200 million annual upgrading costs and boost flexibility in the shifting telecommunications industry. AT&T, British Telecom, Equant and several regional Bell operating companies are believed to be among the likely suitors.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Wang Laboratories to acquire Olivetti's computer-services unit
Article Abstract:
Wang Laboratories acquired Olsy SpA, a computer-services subsidiary of Olivetti, for up to $430 million, according to people familiar with the transaction. The move would place Wang among the largest international computer-service providers, raising its current $1.3 billion in annual revenue by about $2.3 billion. Wang also will boost its European and Asian computer-service business, which have grown quickly in the installation and maintenance of corporate computer systems. Financial terms call for Wang to pay Olivetti approximately $100 million in cash. Wang also would issue between seven million and eight million shares, or a 17% stake, to Olivetti. Microsoft currently owns the highest stake in Wang, at around 10%. Wang, with $3.6 billion billion in combined sales and more than 21,000 employees worldwide, has trailed computer-services leaders such as IBM, Electronic Data Systems and HP.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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