More insight into the complexities of this deal comes from the outsourcing lawyers at Pillsbury Winthrop Shaw Pittman LLP, who just released a memo on the subject.
Here's a sample:
Pillsbury understands that EDS is currently undertaking a review of its contracts' change of control provisions to plan for the finalization of the merger. While EDS believes that most of its contracts contain some form of a change of control provision that is generally fair to both parties, Pillsbury's past experience indicates that some clients may use the acquisition as a means for significantly restructuring or (potentially) terminating their existing outsourcing relationship on terms favorable to the customer. For now, we urge clients to proceed carefully and not engage either HP or EDS in such discussions without first developing a complete understanding of their available options.
You'll find the
full memo on Pillsbury's Web site.
- The editors
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