confirmed earlier media reports that it's engaged in "advanced discussions" to to acquire
Electronic Data Systems
"There can be no assurances that an agreement will be reached or that a transaction will be consummated. HP does not intend to comment further until an agreement is reached or discussions are terminated," the company said in a press release late Monday.
Shares of EDS jumped nearly 28% to $24.13 before being halted late in Monday's session. H-P fell about 5% to $46.64; it also was halted before the closing bell.
The deal, which could be announced any time, is expected to be valued between $12 billion and $13 billion, according to the
Wall Street Journal
, which would represent the latest in a string of acquisitions by the Palo Alto, Calif., technology company.
H-P acquired Mercury Interactive for $4.9 billion in 2006. Last year, H-P acquired Opsware for $1.7 billion, and spent an additional $1 billion on 8 other acquisitions.
In December, H-P CEO Mark Hurd told analysts at a briefing that the company's revenue forecast anticipated some small acquisitions this year, but did not include any major acquisitions.
EDS, which is based in Plano, Texas, provides technology outsourcing services to various organizations and had revenue of $22.1 billion in fiscal 2007. H-P has been beefing up its own services division, which had $4.4 billion in revenue in the most recently-ended quarter, as it ratchets up the competition with