https://www.businessinsider.com/stock-market-outlook-tech-mergers-acquisitions-targets-morgan-stanley-2019-8
6 replies (most recent on top)
At least in one way, DXC came out on top
To much of a mish mash of ideas, companies put together, liabilities and %$$%$%$% off clients. Best to let the company slide and its share price and then fire sale and dividing the bits off - asset fire sale in next 2 years with only the good prospects being taken forward and the raw meat, e.g. personal thrown to the wolves.
its laughable really
I would have thought a NEW investor would go for a new startup really.
After this "f—ed up company" is a struggling old tech SI with a track record of negative earnings growth performanceand contonuous organisation chaos.
Its significant that these rumours have had to be released to stop the share price falling even more!
Admittedly, if the share price was in the teens, it may be worth buying, but >$60, this talk of takeover is just mugger's bait to save the arses of indebted investors (who must be really p*ssed with ML now)
I keep saying it, DXC has little value for a total buyout right now - the only thing of value were the contracts and the in place ability to service those. Its losing the contracts and the ability hand over fist.
Other than that its all risk and liability.
A poor buy unless you got it for a dollar and then turned the fixed assets into cash in a full on asset strip and disposal.
Maybe a split and sale is possible - like banks do - split into "good DXC" and "bad DXC", one is a viable ongoing business, the other is dog meat for asset stripping.
DXC's acquisition is Mikey's end-game so this comes as no surprise.
Interesting list but I'd have said Leidos would be a better target, more focused (ie Govt sector) client list, DXC comes with too much of a mish-mash of clients, costs, risks and obligations and would cost too much for a full buy-out (if market cap is $15B then buy out would have to be $20-25B)