Lotus seems ready to accept IBM bid if it can obtain the terms it wants

Article Abstract:

Lotus appears to be willing to accept the planned hostile takeover of the company by IBM as long as it can procure more favorable terms and a better price. Officials from both companies have met several times since the announcement of the proposed bid. The meetings are unusual because they are taking place so soon after the announcement, particularly since the bid is a hostile one. IBM is offering to pay $3.3 billion or $60 per share for Lotus. Lotus has not made a response to the offer but has several more business days to do so. Although the companies are not revealing the details of the meetings, officials have said that the two companies were working hard to come closer together. Lotus officials have apparently given up their demand that the company remain independent but are concerned about the merger of the two companies' corporate cultures. Lotus officials are also trying to get a somewhat better price for the company.

International Business Machines Corp., IBM, Lotus Development Corp., LOTS, Company Acquisition Merger

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Computer Sciences gets takeover bid; Computer Associates makes $8.56 billion cash offer in unsolicited maneuver

Article Abstract:

Computer Associates (CA) offered to acquire corporate consumer services company Computer Sciences (CSC) for approximately $8.56 billion, or $108 a share. The publicly unsolicited bid raised CSC's stock from $92.18 to $103.875, reaching a height of $113.50. Observers question whether CA would alienate the 44,000 CSC employees. Some CSC clients may show reluctance to sign long-term arrangements until the outcome has been resolved, according to Diamond Technology Partners CEO Melvyn E. Bergstein. CA, a software maker, has struggled against larger competitors because it lacks a services subsidiary. Discussions between the two companies began in mid-Dec 1997, but they stalled over price. CA's 'bear hug' move does not represent a hostile takeover attempt but makes discussions less friendly.

Computer Services, Computer Systems Design and Related Services, Computer and Data Processing Services, Computer services industry, Information technology services industry, Information technology services

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Hostile bid is planned for Computer Sciences

Article Abstract:

Computer Associates International (CA) is planning a hostile takeover of Computer Sciences, having failed to get the computer-services company to the negotiating table with a $114-a-share offer. CA may now lower its offer to $108 a share because it believes Computer Sciences will lose some of its value during a long, drawn-out takeover battle. There are several steps open to CA, including an official tender offer that would require a formal reply within ten business days. A proxy fight is another option, wherein CA would attempt to dislodge Computer Sciences' board at the company's annual meeting in Aug 1998. Computer Sciences is looking for other buyers besides CA and has considered IBM, AT&T, EDS and Andersen Consulting.

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