Computer Associates abruptly ends hostile pursuit of Computer Sciences

Article Abstract:

Computer Associates (CA) unexpectedly withdrew its $9.18 billion hostile bid for Computer Sciences, saying it preferred to end a highly bitter takeover duel. The surprising move ended the largest largest computer industry hostile takeover attempt of $108 a share. CA said it will seek to strengthen its computer-services capabilities through smaller acquisitions. A Nevada federal judge was scheduled to hear CA's case against Computer Sciences on Mar 17, 1998. Computer Sciences had withdrawn certain rights from its shareholders stated in the company bylaws. A frustrated CA Chmn and CEO Charles Wang said Computer Sciences' ability to appeal any ruling could prolong the entire process. Wang also said he misread conversations with Computer Sciences Chmn Van B. Honeycutt prior to the bid, as Wang believed the deal's success hinged on a higher offer.

Management, Wang, Charles B.

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Computer Sciences' board rejects bid by CA, setting stage for bruising fight

Article Abstract:

Computer Sciences' board unanimously rejected software maker Computer Associates International's (CA) takeover bid of $9.18 billion. The rejection covered both a hostile $108-a-share offer and $114-a-share friendly bid, as Computer Sciences said they do not represent 'fair value' and lack 'business sense.' The move signals a protracted duel for control of Computer Sciences, a computer-services company, as both firms are expected to court large institutional shareholders. CA also seeks to convince a U.S. District Court judge in Nevada to prevent Computer Sciences from strengthening its antitakeover measures while attempting to gain control of the board. Computer Sciences said its current and future customer base would be adversely affected by a successful CA bid.

Computer software industry, Software industry

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