I saw this today via a Google alert.
"Market attention recently turned to ongoing reports about DXC exploring strategic alternatives. Some analysts have noted renewed takeover interest from private equity groups, which likely stirred price volatility and new speculation about its true value."
https://finance.yahoo.com/news/investors-reassess-dxc-technology-takeover-050450354.html
DXC should just die and take all it's poison with it.
@gk maybe some of the bigger Government contracts could be interesting potential buyers?
There's no mandatory bid percentage in USA stocks.
If you wanted to take control and force a company to sell to you you need to get majority control (50% of the shares plus one)
@v8 to force through a take-over, they’d probably need to offer 50% above the closing price before the bid goes public.
@qz
If someone bought all of the outstanding shares that currently value the company at $2.4bn they would own the whole company assets and all, they wouldn't need to pay anything further unless they're getting rid of all the execs who have severance packages.
Anyway, it only needs approx 25% share ownership of the whole company to trigger a full bid for the remaining shares.
Outstanding shares is 2.4bn...enterprise value is about 5.2bn (outstanding shares plus cash in bank and particular types of asset) ... But neither of those numbers are what you'd pay to buy dxc (unless you tried for a hostile takeover by trying to corner control via secretly buying shares)
A purchase price of any business is more than the enterprise value cost. It would include more assets and a figure for some years of future cash take.
It's probably more like 15-20bn...which is why 10bn was a super low ball
It’s quite strange that a company of 130k employees and a $12bn turnover can only be worth $2.4bn. It’s essentially worthless and I can’t see a serious bidder thinks there’s anything worth having except, maybe, the insurance arm.
Maybe the best thing that could happen is if the company lost everything and had to start again. At least then we might finally build things properly this time. But given our track record, I don't imagine we'll win many of the contracts.
@ez $2.4B is pretty much the cash on the books plus receivables from customers minus payables to suppliers. The people plus the so-called “IP assets” plus that magnificent inventory of timesheet systems are all together worth a grand total of zero dollars.
given the previous takeover offers were $10B and stupidly got rejected, now the market cap is less than $2.4B so the offer will be $3-4B its bound to get rejected again. And Accenture and Kyndryl will just keep on picking off the clients and deals they want, as they have been for several years.
Its the relationships and luxoft IP. If sold which is what Raul and his people know is the only way out , it will mean layoffs for us but L1-L3 will be making very good money.
DXC is worthless — it’s the contracts people want, not the company. The staff aren’t exactly in demand either. Most are either pretty inept — because there’s no training unless you’ve got the drive to do it yourself (and that’s not part of DXC’s culture) — or they’re winding down toward retirement, holding out for a package that’s never coming. So they take it another way — coasting through their final year or two, quietly collecting what they can while the place keeps going through the motions.
But why buy us - when you can just walk in and take our contracts by saying you can do it better. It's not hard!!!
Elon is planning to buy and get the best of engineers at a good price. 20k of them and fire the rest.
Why take over DXC , just let it fail and buy hardware for $0.10 on the dollar