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CSC to layoff 5000 staff and sell out! |
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by Stan Beer
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Wednesday, 05 April 2006 |
The world's third largest IT outsourcer Computer Sciences Corporation (CSC) is officially looking for a buyer and speculation is rife in the marketplace as to who could have deep enough pockets and a large enough stomach to digest the services collossus, which has a market cap of more than US$11 billion.
Companies such as HP and Lockheed Martin have been touted as possible
buyers, but analysts such as Ovum believe that CSC, with 80,000 staff
worldwide, is just too big to be absorbed by another services player.
However, Ovum believes that CSC would be an attractive proposition to
private equity firms because its low debt and high cash generating
capability.
The sale announcement was accompanied by stated plans to restructure
the company over the next two years, involving layoffs of 5000 staff.
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