Computer Associates (CA) is seeking to expand its services division with a massive $9 billion (#5.45 billion) offer for US IT services firm Computer Services Corporation (CSC). If the unsolicited bid is accepted, CSC's shareholders will receive a windfall of $108 (#65.5) per share in cash - a 35% hike over what the shares were worth when talks began in December. CA needs a service division to fuel further growth. "Five years ago we were a mainframe company, and we knew that to evolve we needed to become a product solutions company across all sectors," commented Jay Huff, director for advanced technology at CA. "Customers want an end-to-end vendor-independent service. For instance, today we cannot deliver a hundred people to a customer site." The acquisition of CSC, explained Huff, will give CA the computer services division it needs to compete with companies like IBM, that already offer end-to-end services. The hostile bid has been published extensively on CA's Web site. CA's chief operating officer, Sanjay Kuma, posted a letter outlining the offer to Van Honeycutt, chairman and CEO of CSC, on the Web. CA also used the Web to publish an open letter to CSC employees, offering each a position in the new company and touting reasons why CA is the best place for an IT professional to work. However, CSC has made no response to the offer, and denied suggestions that the two companies have been in negotiations. Some shareholders, who stand to make a financial killing should the offer be accepted, have taken legal action against CSC's board, urging acceptance and claiming that the board has failed to act in the shareholders' best interests. CSC previously put a statement on the Web urging shareholders to be cautious and refrain from taking any precipitous action concerning the bid, until they had received CSC's official response. Among CSC's UK customers are British Aerospace and Anglian Water. The company competes with systems integrators and consultancies such as EDS (Electronic Data Systems) and Cap Gemini.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago