Thread regarding DXC Technology layoffs

@1mvh
Wow, you are so optimistic.

Could you be so kind to explain, why some one would pay 35 - 40$ per DXC share?

196SONXo ? not in terms of debt that DXC is massing.

Bid needs to be $35 to $40 range, way too low at the moment.

I should have added with regard to the OP's comments - Indian MSP's are as different to DXC and Atos as Accenture is.

Comparing them to DXC is totally wrong and anyone on Wall Street making that comparison is totally barking up the wrong tree.

That's not to say that Wall Street not understanding the actual business of the c-sino chips they push round the board is anything new. They love to make bad sweeping statements because quite frankly they don't care. I am old enough to remember the idiocy of them dumping tech and telecoms stocks in 2000 because "now the internet is built there is no money to be made in technology". Yeah clearly no money at all to be made, we've all basically done no business at all in the last 20 years.

Don't believe the hype.

If Lawrie was still here he'd be all over this.

I don't think Salvino is such a Wall Street player. I've heard him say several times about not caring about the stock market, he thinks more in terms of basic business concepts - cash flow, debt and sales projections.

The offer on the table is too low - I've said that several times. This is Atos being cheeky with a low ball. I don't think anyone is convinced this is a good deal.

I suspect this will rattle on for a while because I am fairly sure the noises suggest Q4 might demonstrate some reasonable numbers. Nothing amazing, but demonstrate Salvino has things on a steady keel.

On that basis $25 is too low.

Yes I know part of the current $29 is because of Atos sniffing, but intrinsically the value is greater than $25 and could easily go higher after FY21 closes out.

And no, before you say it, I'm not a shill, a management goon or anything else - I am a pleb hoping for the pay rise I haven't had yet.... and I believe I might be seeing it this time, but we'll see.

If I don't, then they can poke off just as soon as Covid is over.

There was a quite good article in a online news paper who did a bit of calculating.

Reuters and others spread, that Atos would have offered 10 billion $ for DXC + debt (~3.45 bil $).
This would result in a share price 25,80$. Currently it is 29$. This would sum up to a 10,8 billion price tag.
So the market is assuming either Atos is willing to pay more than originally announced, or someone else steps in as a buyer.
There is not much room for an upside on the share price. In case Atos sticks with intended price or walks away, the DXC shares will more likely to drop.

Moving the headquarter to France, having french bosses will be a major surpise for a lot of the US managers. This will be a big cultural shock.

1lcw+196SONXo Yep DXC name and IPs will be swallowed up by Atos but many of DXC's staff will be WFR prior to and shortly after merging (same with CSC & HPE ) to reduce overheads and costs in the businesses - especially ineffectual multiple layers of "yes" managers

Atos will be in controlling seat in all this with their staff considerable safe (for time being) from being WFR.

Who is Drumpf ? if it's Mike S then the buy out is a sure thing

With its massive fall in revenues year on year, losing its place on the portfolios of 20 of its 60 hedge fund investment interests, failed to secure some big lucrative digital deals, added 3 billion to its debt to make 9 billion debt and only made the news because of the wannacry attack on xchanging, its lawsuits over female pay discrimination costing $650,000, its medical malpractice suit with New York City and a DXC subsidiary ($2.77M) and to raise funds to cover its debt it sold US state and local health to Veritas capital for $5billion and healthcare to Dedalus for $525M. Leaving a shell behind. So DXC probabky needs a lift right now to boost its size to that of Accenture (certainly bigger than TATA consultancy services and IBM consultancy services). ATOS (the backups and cloud storage data centre company) may be the only way DXC can ensure its survival. As Reuters reported ‘DXC is too small on its own to survive in a low margin world’ I would think DXC shareholders would jump on the chance to grab ATOS than continue with an investment in an empty shell. Imagine what it would do to their share price and dividend when announced.

Hearing Drumpf is joining atos board next week.