EDS, Hewlett-Packard merger cleared by European Commission

By Julie A. Miller

Washington, July 25 - Hewlett-Packard Co.'s proposed acquisition of Electronic Data Systems Corp. was cleared by the European Commission, which concluded that a merger of the U.S. technology firms would not significantly impede effective competition within the European Union.

Hewlett-Packard also announced that the companies have reached a settlement with plaintiffs in five stockholder lawsuits.

As part of that settlement, which needs court approval, HP and EDS confirmed that the merger will not close before Aug. 18, and the EDS third quarter 2008 dividend of $0.05 per share will be paid on Sept. 10 to the stockholders of record as of the close of business on Aug. 15.

EDS will hold a special meeting of shareholders on July 31 to vote on the company's acquisition by Hewlett-Packard and Hawk Merger Corp. Hewlett-Packard entered into a definitive agreement in May to purchase Electronic Data Systems for $25 per share, or approximately $13.9 billion.

On June 30, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired without a request for additional information by the U.S. Department of Justice or the Federal Trade Commission.

Electronic Data Systems is a technology services company based in Plano, Texas. Hewlett-Packard is a Palo Alto, Calif., computer, printing and imaging technology company.

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