EDS and its subsidiaries employ about 137,000 people worldwide, around 90,000 of them overseas. About 45,000 of the overseas employees work in what EDS calls "best shore" countries, affording high service quality and low cost. EDS aims to boost the number of overseas workers in the "best shore" countries to around 55,000, said Rittenmeyer. HP ended its 2007 fiscal year with about 172,000 workers.
The $25 per share offer is a $6.14 premium above EDS' closing share price of $18.86 Friday. Rumors of the acquisition drove up EDS' share price to $24.13 by the close of trading Monday. Within two hours of trading Tuesday, EDS shares were at $24.45, up by $0.37, and HP shares were down by $2.95 to $43.88. The share price of buying companies often drops on the day an acquisition is announced, as traders calculate that big acquisitions usually have a dilutive effect on earnings, at least initially.
(Chris Kanaracus in Boston contributed to this report.)