SAN FRANCISCO — Hewlett- Packard is negotiating to buy information-technology-services provider Electronic Data Systems in a deal that could help the world’s largest personal-computer maker win more consulting contracts with large companies and government agencies.
Palo Alto-based HP and Plano, Texas-based EDS confirmed the talks Monday shortly after The Wall Street Journal reported a deal could be reached as early as today. Citing unnamed people familiar with the matter, The Journal said HP will pay $12 billion to $13 billion — a price that translates to $24 to $26 per share.
EDS has an administrative office in Louisville.
EDS shares soared $5.27, or nearly 28 percent, to finish Monday at $24.13. HP shares dropped $2.49, more than 5 percent, to close at $46.64 as investors fretted over the deal’s logistics.
HP ended January with nearly $10 billion in cash.
If the deal is completed, it would be HP’s biggest acquisition since it bought Compaq for $19 billion in 2002.
HP has been trying to expand its technology-consulting business for years, hoping to challenge rival IBM Corp.’s leadership in the lucrative field.
Acquiring EDS also could open more government doors for HP, which had about $500 million in prime federal contracts in fiscal 2007. EDS is far better connected, with deals worth about $2.5 billion.
