Report: HP may bid for Computer Sciences

PC maker and a private-equity firm are said to be in discussions toward what could be a multibillion-dollar deal.

Reuters

Feb. 4, 2006 8:00 a.m. PT

Computer making giant Hewlett-Packard and Blackstone Group, the private equity firm, are examining a possible purchase of Computer Sciences Corp., the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The newspaper reported the discussions were preliminary and could break down.

Under the plan, HP would at first own a minority interest in CSC, the newspaper said, adding that the computer maker could buy out Blackstone and other private-equity owners at a later date.

The Journal said it was unclear what Blackstone and HP would pay for CSC, but added that people familiar with the matter said CSC had hoped to attract an offer of $65 a share, which would amount to about $12 billion.

Shares of CSC closed at $50.82 on the New York Stock Exchange on Wednesday.

Representatives of CSC, Blackstone and HP could not be immediately reached for comment.