HP

Getting ripped off…

Not as much as the UK taxpayer: http://www.theregister.co.uk/2007/11/19/mod_says_dii_is_peachy/ http://www.theregister.co.uk/2007/12/27/uk_public_sector_outsourcing_cost_overruns/ And even Rupert Murdoch: http://www.channelregister.co.uk/2007/10/23/eds_sky_deceptive/

A previous employer of mine used EDS for their “technology solutions”. EDS is terrible.

I have some friends that work at EDS…and you thought you might be living out an episode of The Office, you should see it over there! (from what they tell me)

EDS is a terrible company - why anybody would want to buy it is beyond me…

Empire Building??

I should add, lets hope it doesn’t end up like the Roman Empire…

there aren’t too many franchises for sale at that size and scale that offer both a tech consulting and infrastructure mgmt capability in one shot that EDS offers. HP has been itching to get into the games that IBM is in - services, consulting, and away from HPs strong hardware profile. plus HP probably is eyeing EDS’s big deal and infrastructure mgmt expertise to serve as a channel for HP’s hardware business, which may turn into a volume game soon if it isn’t already one.

Rohufish: saying they have an expertise is being charitable

i hear you - i have ex-EDS guys on my team. i’m just separating out the good company vs good stock distinction from the acquiror’s perspective. for HP, there may not be too many options for bulking up on the services, consulting front, while opening up a huge channel for their hardware biz. maybe the HP warm blanket around the problem child EDS will heal the family?

simple analysis shows how much market thinks EDS is worth to HPQ: EDS bought out at $13.9B HPQ mkt cap lost since rumors of deal ($49.8 - $43.5) = 6.3/share * 2.46B shares outstanding = $15.54B EDS is worth 13.9-15.5 = -$1.6B?

AbbeFaria Wrote: ------------------------------------------------------- > Rohufish: saying they have an expertise is being > charitable This is the problem - EDS is a terrible company. Every time I run into them in life, I think that I will run into a bunch of dull people in a corporate culture that says don’t do any decent work. I don’t have that feeling about HP. I think that integrating these two companies carries considerable risk for HP. I like MFE’s analysis.

they said the same thing about the compaq acquisition

Yeah, I remember saying something like that. I didn’t think the merger was a good idea at the time and a few years afterwards I thought my opinion had been borne out. I’m not so sure anymore except that I think that Hurd has done a fine job running the company to this point. Also, at the time I was saying it I owned a Compaq. I would do everything in my power not to work with EDS.

Yeah, I remember saying something like that. I didn’t think the merger was a good idea at the time and a few years afterwards I thought my opinion had been borne out. I’m not so sure anymore except that I think that Hurd has done a fine job running the company to this point. Also, at the time I was saying it I owned a Compaq. I would do everything in my power not to work with EDS.

Yeah, I remember saying something like that. I didn’t think the merger was a good idea at the time and a few years afterwards I thought my opinion had been borne out. I’m not so sure anymore except that I think that Hurd has done a fine job running the company to this point. Also, at the time I was saying it I owned a Compaq. I would do everything in my power not to work with EDS.

EDS = the Dunder Mifflin of technology?

wow what happened with those repeat posts above?

Re: HP new Posted by: numi (IP Logged) [hide posts from this user] Date: May 13, 2008 04:37PM “EDS = the Dunder Mifflin of technology?” Actually Dunder Mifflin is more productive I think. My friend told me some hilarious stories of their operations divisions. You could go days doing nothing and no one would notice. Once I asked him to break down his job for me. He said he got reports for a certain division sent to him, and he then made sure it was for that division, then send it on to them. I said, so wait, where do you add value? He said, I don’t. Whenever I talk stocks with my 2 friends there, all they ever would say is short EDS.

MFE Wrote: ------------------------------------------------------- > simple analysis shows how much market thinks EDS > is worth to HPQ: > > EDS bought out at $13.9B > > HPQ mkt cap lost since rumors of deal ($49.8 - > $43.5) = 6.3/share * 2.46B shares outstanding = > $15.54B > > EDS is worth 13.9-15.5 = -$1.6B? I understand what you are getting at, but I never understand when people do these types of analysis. Let’s see, a saturating PC market, where desktop macs have been very successful at gaining share, coupled with an overall slow down in spending. I remember everyone last year talked about AAPL going from $85 to $120 as unjustified, because the market cap increase was as large as MOT and 2/3 the size of NOK (don’t quote the me on the exact numbers) which both have a much more diversified handset portfolio. Not only did AAPL not go back down it shot up from their as every segements seemed to be firing on all cylinders. My point is this marketcap analysis by itself as absolutely useless