Business Services Industry
As Plano, Texas, Data Firm Bargains with GM, Renewal Fees Face Heat.
Knight Ridder/Tribune Business News, April, 2002
By Crayton Harrison, The Dallas Morning News Knight Ridder/Tribune Business News
Apr. 15--Electronic Data Systems Corp. is trying to answer critics on two fronts as it renegotiates contracts with its biggest client, General Motors Corp.
If the Plano-based computer services firm loses the business to a competitor, detractors could condemn it for squandering its ties to GM. But some fear that EDS may cut prices too much to keep the contracts.
EDS says that it can please both sides and that recent stock downgrades by Wall Street analysts have more to do with stock price valuation and a bearish market than any internal matters.
The spotlight on GM contracts shows the heat EDS is facing from investors, who want the company to do a...
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