Periodic review of companies with sufficient cash to BUY CSC.
Oct 1, 2011 CSC share price: $26.85 Market capitalization: $4.16 B Enterprise Value: $5.35 B Cash on hand: $1.67 B Total Debt: $2.85
Potential Suitors AT&T (T) $3.8 B Accenture (ACN) $5.7 B Boeing (BA) $8.7 B CISCO (CSCO) $44.58 B GE (GE) $91 B Hewlett-Packard (HPQ) $12.9 B (may be to thwart bid for HPQ by Oracle. Honeywell (HON) $4.0 B IBM (IBM) $11.7 B Lockheed Martin (LMT) $3.5 B Microsoft (MSFT) $51.3 B Northrop Grumman (NOC) $2.8 B Oracle (ORCL) $32 B United Technologies (UTX) $5.4B
Realize companies already taking over another company makes them unlikely suitors, so AT&T, United Technologies are really on the sidelines.
Seems unlikely that Cisco, Oracle, Microsoft, GE, or IBM would buy CSC.
Lockheed and Northrop do not quite have enough cash.
Hewlett-Packard has enough of it own problems and does not need more.
So who does that leave? Honeywell, GE, and Accenture and private equity investment companies.