European Commission approval obtained for HP's acquisition of EDS

Telecomworldwire, July 28, 2008

TELECOMWORLDWIRE-28 July 2008-European Commission approval obtained for HP's acquisition of EDS(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Information technology services company HP (NYSE:HPQ) announced on Friday (25 July) that the European Commission has approved, without conditions, HP's planned acquisition of Electronic Data Systems Corporation (EDS).

HP and EDS had signed a definitive agreement under which HP will purchase EDS at a price of USD25.00 per share, or a total enterprise value of approximately USD13.9bn.

The company said that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to the acquisition expired without a request for additional information by the US Department of Justice or the Federal Trade Commission.

The transaction however still requires EDS stockholder approval and regulatory clearance from other non-US jurisdictions. EDS stockholders are scheduled to vote on the transaction on 31 July 2008.

In addition, the transaction is also subject to the satisfaction or waiver of the other closing conditions specified in the definitive agreement.

The company also announced that HP, EDS and the plaintiffs in the five stockholder lawsuits, which were commenced following the execution of the definitive agreement, have agreed to settle and dismiss all pending lawsuits concerning the proposed merger, subject to court approval.

As a part of this settlement, HP and EDS have confirmed that the closing of the merger will not occur prior to 18 August 2008. As a result, the third quarter 2008 dividend of EDS of USD0.05 per share will be paid on 10 September 2008 to the EDS stockholders of record as of the close of business on 15 August 2008.

In connection with the settlement, HP and EDS have reportedly entered into an amendment of the definitive agreement to incorporate the terms of the settlement and other terms agreed to by the parties.

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