Monday May 12, 08:46 PM
IT services company shares rally amid report of H-P interest in EDS
NEW YORK (Thomson Financial) - Shares of information technology services companies rallied Monday, after Electronic Data System Corp. soared on a media report that Hewlett-Packard was close to buying the company for $12 billion to $13
billion.
EDS' stock ran up 27% to $24.03 on volume of 12.5 million shares, which was more than 4 times the 30-day average of 2.9 million shares. The intraday high of $25.40 was the highest price seen since Aug. 2.
The Wall Street Journal reported, citing people familiar with the matter, that while terms of the deal were not clear, H-P and EDS were expected to to make an announcement of a deal as early as Tuesday.
Among others in the information technology consultancy business, Computer Sciences Corp (NYSE: CSC - news) . climbed 7.4% to $46.75 on volume of 1.7 million shares, or about double the 30-day average of about 822,000 shares.
Affiliated Computer Services rallied 2.5% to $54.44, Accenture (NYSE: ACN - news) gained 1.3% to $38.24 and BearingPoint (NYSE: BE - news) tacked on 3.5% to $1.78.
H-P's stock, which is a component of the Dow industrials, was down 6% to $46.20, erasing earlier gains to an intraday high of $49.97, which was the highest price seen since Jan. 2.
Fellow Dow member and H-P peer IBM (NYSE: IBM - news) was up 0.9% at $125.17, but pared earlier gains to a 6 1/2-year high of $125.99.
Tomi Kilgore
tk1
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