Computer Associates Makes Offer for CSC
Computer Associates (Islandia, NY) has made a pitch to acquire Computer Sciences (El Segundo, CA) for approximately $9 billion. Combined, the two companies would have revenue of approximately $11 billion. The deal would create one of the biggest and most promising information technology services provider worldwide. CSC shareholders would receive $108 in cash for each share of CSC common stock. The deal would allow CA to provide extensive service offerings, which would offset its enormous product supply, including the Unicenter applications management system and Jasmine database management product. CA's stock dropped 11% to 51 3/8, due to the lack of details about the proposed acquisition and the fact that the all-cash transaction would be extremely tax-heavy.