Report: Deutsche Telekom Eyes EDS Bid

The Financial Times is reporting that Deutsche Telekom (DT) is interested in acquiring Electronic Data Systems (EDS). The two companies have held talks about an alliance, the paper said, and one option being explored is for Deutsche Telekom to buy EDS, merge it with its T-Systems computer services division and then spin the unit off in a public offering.

A stumbling block may be resistance from shareholders of Deutsche Telekom, who are expecting the company to focus its investment in mobile systems. One option to address this, according to the FT, would be for Deutsche Telekom to partner with a private equity firm to help finance the deal. EDS currently has a market capitalization of about $10 billion.