HP won’t close EDS deal before payment of one last dividend to EDS shareholders
Hewlett-Packard and Electronic Data Services settled five EDS shareholder lawsuits filed in
response to the proposed merger of the two companies, according to a release HP put out Friday announcing approval of the HP-EDS merger by the European Commission.
The lawsuits were brought by shareholders who questioned the deal’s valuation and who urged that EDS put itself up for auction in hopes of attracting a higher bid, something plaintiffs said terms of the deal
prohibited.
As part of the settlement, HP and EDS said that the closing of the merger will not occur prior to Aug. 18. Consequently, a final dividend payment of 5 cents per share will be paid in September to EDS stockholders of record as of Aug. 15.
The merger still must be approved by shareholders of both HP and EDS.
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