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CSC, CA call truce

The companies say they are scuttling all lawsuits related to Computer Associates' failed takeover bid of Computer Sciences last year and are expanding their relationship.

Computer Associates and Computer Sciences today said they are scuttling all lawsuits related to CA's failed takeover bid of CSC last year, and announced a major expansion of their global software licensing agreement.

The agreement expands CSC's right to sell Computer Associate's Platinum Technology product line, tools that help companies integrate different computing environments. CSC, a $7.7 billion computer services firm, already sells CA's software to its clients, but this extends the relationship broadly to allow CSC to market the entire Platinum line to its customers instead of just several products, a CSC spokesperson said.

As part of today's deal, the two companies also agreed "to end legal actions remaining from CA's offer to acquire CSC in 1998."

In August, a federal court dismissed a suit brought by CSC, arising from CA's $10 billion failed takeover bid of CSC. The court said it found no evidence that CA used confidential information when it launched its hostile takeover bid for CSC in 1998. CA later dropped its bid, which was fiercely opposed by CSC.

At the time, Computer Associates vowed to appeal the dismissal of a counterclaim that CSC interfered with a tender offer wrongfully. The company was seeking more than $2.5 billion in damages, according to Reuters.

Now, however, both sides are seeking a truce, with CSC chief Van Honeycutt commenting today on remarks made during the court case that were construed by some as discriminatory. During the takeover battle, CSC raised concerns that CA's chief executive Charles Wang's business dealings and ties to China could raise "national security issues," that could impact CSC's business.

"CSC does not condone any remarks which may have been made by any individuals working on or reporting on the takeover attempt or our defense, that could be construed or misperceived as discriminatory in any manner," Honeycutt said in a statement.

"We applaud CSC's acknowledgement of the fact that issues of race should never enter into business relationships," Wang responded.

With today's deal, "We're looking to move on with business and put all that stuff behind us and get on with our lives if you will," CSC spokesman Frank Pollare said in a telephone interview today.