Hewlett-Packard is in talks to buy technology outsourcing company Electronic Data Systems Corp for $12 billion to $13 billion in a deal which would vault it to a close second to IBM in technology services.
The acquisition would be HP's biggest since its $19
billion acquisition of Compaq in 2002.
The Wall Street Journal first reported the discussions,
and later HP and EDS both said they were in talks about
a business combination but gave no details.
A bigger HP could compete better against IBM in going
after large clients and help it keep costs in line.