Lawsuits filed to block HP-EDS merger
Published: 04 Jun 2008 08:37 BST
An organisation in the US has filed a lawsuit in an attempt to stop the sale of IT services company EDS to HP.
Utah-based Intermountain Ironworkers Trust Fund, which filed the suit through law firm Baron & Budd, has alleged that the sale is unfair on EDS shareholders.
Baron & Budd stated on its website that the proposed sale agreement prohibits EDS directors from seeking a higher price from alternative bidders and guarantees HP a payout of $375m (£192m) if the sale does not go through.
The law firm also noted that the deal had not been approved by EDS shareholders.
InformationWeek reported last week that an EDS shareholder has also filed a suit in Delaware against the merger, seeking to force EDS to auction itself off for a higher price.
HP last month confirmed it was buying EDS for $13.9bn.
The deal, according to analyst Ovum, will shake up the global IT-services landscape but is fraught with the challenges of merging two big companies.
When contacted by ZDNet Asia, a HP Singapore spokesperson said the suits were filed against EDS and, as the merger is not yet official, it was inappropriate for HP to comment.
Credit: HP-EDS merger draws legal suits from ZDNet Asia
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