The Channel logo

News

By | John Oates 2nd November 2005 14:48

CSC shares leap on takeover talk

Lockheed Martin in the frame

CSC shares jumped more than $8 yesterday on rumours that the company could be in line for a massive takeover. Shares closed at $58 after floating at around $50 for most of the year.

Lockheed Martin is leading a group of investors who will pay up to $12bn for the services company. The group is offering between $64 and $65 a share, according to AP. Lockheed shares fell slightly on the news.

Lockheed is working with private investors Blackstone Group, Texas Pacific Group and Warburg Pincus. The Wall Street Journal, which broke the story, reckons Lockheed is keen to get its hands on CSC's government contracts while the private equity groups will get the commercial contracts.

Lockheed is primarily a defence contractor although it does have some IT services business - it took over the deeply troubled UK air traffic control project.

Buying CSC would give Lockheed solid government revenues and help it move towards the current buzzwords of "network-centric warfare and defence". As defence projects increasingly rely on software so Lockheed needs better software skills.®

alert Send corrections

Opinion

Houses of Parliament in night-time

Andrew Orlowski

Come on everybody, let's upload all our stuff into Government by Cloud
Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever