EDS

(EDS)

surged 10% Wednesday as investors speculated that the hard-hit computer outsourcing outfit might be on the verge of winning some big deals.

EDS said Wednesday that it is "in exclusive final contract discussions with Bank of Bermuda to provide a comprehensive package of banking systems" in a deal that could be worth $375 million over 12 years. The company's statement came the same morning that Lehman Brothers speculated that EDS could be in line to win a big deal from Bank of America.

EDS shares have plunged in 2002, falling about 75% amid a slide in information technology spending and bankruptcies at clients including

WorldCom

,

US Airways

and

UAL

. Investors continue to wonder if the company's business will be robust enough to weather what looks like a soft economy in the year ahead.

On Wednesday, EDS rose $1.72 to $18.75.