Computer Sciences opens door to sale while rejecting CA's $9.18 billion bid
Article Abstract:
Computer Sciences' official rejection of a hostile $9.18 billion tender offer from Computer Associates International (CA) as 'inadequate' formally paves the way for a potential sale or merger with another company. This marks the first confirmation that Computer Sciences is considering higher offers. The computer-services company announced that it will 'explore and consider all alternatives available to the company which may prove greater value to stockholders' than the $108-a-share offer from CA in Feb 1998. By comparison, Computer Sciences had insisted on maintaining its independence prior to this statement. Possible alternatives to the CA move include a sale, merger or any other combination with a third party, according to Computer Sciences. The company also could offer more shares to the public or assume debt, which would raise CA's acquisition cost.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Computer Associates opens hostile bid of $9.18 billion for Computer Sciences
Article Abstract:
Computer Associates International (CA) has made a hostile takeover bid of $9.18 billion for Computer Sciences. Industry observers are labeling CA's move risky due to the nature of Computer Sciences' business. A computer-services business needs loyal employees to succeed, as it does not rely on products to bring in revenue. CA's stock fell $2.3125 to $46.0625 on Feb 17, 1998 as investors worried that the company was in for a long, protracted battle and its inexperience in managing a consulting business. CA's stock has slipped 21% since Feb 11, when the company first offered to buy Computer Sciences. Computer Sciences stock has also suffered with share prices falling 81.25 cents on Feb 17, down to $106.5625.
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: