The vultures will be circling. Lawrie has ruined the company, destroyed the share price but there are still a few tasty morsels on the DXC carcass. A hostile takeover must surely now be the most likely outcome with DXC trading 70% off its peak! Even if just to acquire some of the remaining public sector contracts the deal makers will be busy behind the scenes.
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Q1 numbers were bad, Q2 will be worse given the number of internal meetings focusing on numbers. numbers, numbers and deals just falling away. Customers are nervous now about committing to DXC - the death of DXC will be by a thousand cuts before its snapped up. More class actions continue to be rumoured about as the vultures circle. Staff morale is getting lower again as despite their efforts the incompetent management team led by Lawrie continue to pile pressure on - more VR is inevitable followed by CR.
There's always a way for the vultures to make money.
Waiting for the junk bond holders to swoop in on DXC.
@10wAODzF-ldg exactly. Mike has learned from mistakes, and can repeat them to the letter.
I'm sure this will just accelerate the next savage cull of VRs and more probably CRs.
Its not that simple a calculation though.
There is $11.12billion in debt for starters - greater than the current market capitalisation.
That alone probably would make it something someone wouldn't even want for one dollar.
There is quite a bit more slicing and dicing left to do before the carcass is ready for the soup pot.
It would surely mean the end of Lawrie and Saleh's incompetent reign. That's got to be a massive plus. Most other tech companies seem to be thriving. It's just these one trick ponies that have driven us to the edge with their policy of cuts and more cuts.
Quite possibly. But will employees benefit? I doubt it. There’s no history or evidence to support that view during any of the acquisitions or mergers over the last 20 years or so.
Sadly it would be more of the same.