Commentary - 05/13/2008

Hmmm, HP & EDS vs IBM

Posted last night on Reuters was this article:
HP in talks to buy EDS to compete with IBM

Hewlett-Packard Co 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.
. . .
"While Hewlett-Packard has over time built up its own outsourcing practice, this clearly is a move by Mark Hurd to challenge IBM in the services area," said David Garrity, director of research at Dinosaur Securities, referring to HP's chief executive.
Oh, really now. If you simply take a look at the Major Holders of each company in this story, you'll plainly see that HP and IBM are wholly-controlled plantations with 0% inside ownership. That means no insider has enough shares to register on the radar screen. However, slightly more than 1% of the Major Holders control almost 40% of Hewlett-Packard, and less than 1% of the Major Holders of IBM control almost 33% of IBM. That sure doesn't leave much for the other 1000+ institutional holders. The point being, the controllers of the plantation appoints their plantation foreman.

EDS at least is NOT currently totally controlled. There is 11% of the stock held by insiders. This may or may not give EDS some empathy or a conscience. However, the TOP 10 Major Holders make up only 2.5% of the institutional holders, yet control almost 75% of the shares. Somebody is looking not only for a quick payday, but to absorb EDS into total plantation control. Unfortunately, EDS certainly doesn't have any choice in the matter. It's stock has already been bought up.

The net result of this proposed merger simply eliminates another independent company that had simply been slowly and quietly taken over. The elimination of yet another separate corporation simply means more consolidation of power into fewer hands.

Is it any wonder that: Sometimes The Dragon Wins


Symbol Name Of Corporation
HPQ

Major
Holders
Hewlett Packard Co. (As of 31-Dec-2007)
Top 10 Institutional HoldersShares2007Value2006
FMR LLC150,776,9876.12%$7,611,222,303-.--%
State Street Corporation114,197,1134.63%$5,764,670,264-.--%
Barclays Global Investors UK Holdings Ltd111,451,7084.52%$5,626,082,219-.--%
Dodge & Cox Inc98,888,1004.01%$4,991,871,288-.--%
Vanguard Group, Inc. (The)75,928,7973.08%$3,832,885,672-.--%
AXA (Paris, France)67,618,0292.74%$3,413,358,103-.--%
State Farm Mutual Automobile Insurance Co42,070,8001.71%$2,123,733,984-.--%
Wellington Management Company, LLP41,644,7611.69%$2,102,227,535-.--%
Capital Research Global Investors38,950,0001.58%$1,966,196,000-.--%
Bank of New York Mellon Corporation36,046,7961.46%$1,819,642,262-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [1.5%] of 1205 Institutional Holders Control31.54%-.--%
Percentage of Barclays and "Associates" Control10.61%-.--%
NOTE: Dodge and cox manages two funds that control 2.88%.
Capital Group manages three funds that control 2.40%.
Vanguard manages two funds that control 1.69%.
Washington Mutual manages a fund that controls 0.96%.
Therefore, the TOP 10 Major Holders control 39.47% of Hewlett Packard.
Barclays/Associates control 11.57%.
Capital Group controls 3.98%.

Symbol Name Of Corporation
EDS

Major
Holders
Electronic Data Systems (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Dodge & Cox Inc61,743,99012.13%$1,279,952,912-.--%
Hotchkis & Wiley Capital Management, LLC58,125,15011.42%$1,204,934,359-.--%
Barclays Global Investors UK Holdings Ltd48,711,3749.57%$1,009,786,783-.--%
Franklin Resources, Inc32,549,1036.39%$674,742,905-.--%
State Street Corporation32,297,6646.34%$669,530,574-.--%
Brandes Investment Partners L.P.19,867,3763.90%$411,850,704-.--%
Vanguard Group, Inc. (The)14,758,0602.90%$305,934,583-.--%
Blackrock Investment Management LLC13,880,5212.73%$287,743,200-.--%
AXA (Paris, France)12,528,2282.46%$259,710,166-.--%
Brahman Capital Corp.7,085,8491.39%$146,889,649-.--%
% of Shares Held by All Insider and 5% Owners:11%-.--%
Top 10 [2.5%] of 401 Institutional Holders Control59.23%-.--%
Percentage of Barclays and "Associates" Control25.03%-.--%
Dodge and Cox manages two funds that control 8.59%.
Hotchkis & Wiley manages three funds that control 4.49%.
Vanguard manages three funds that control 2.67%.
Therefore, the TOP 10 Major Holders control 74.98% of EDS.

Symbol Name Of Corporation
IBM

Major
Holders
International Business Machines (As of 31-Dec-2007)
Top 10 Institutional HoldersShares2007Value2006
State Street Corporation64,351,8464.65%$6,956,434,552-.--%
Barclays Global Investors UK Holdings Ltd49,106,1943.55%$5,308,379,571-.--%
Capital World Investors47,973,5003.47%$5,185,935,350-.--%
Vanguard Group, Inc. (The)40,307,1142.91%$4,357,199,023-.--%
AXA (Paris, France)37,921,8182.74%$4,099,348,525-.--%
Capital Research Global Investors27,852,5002.01%$3,010,855,250-.--%
Wellington Management Company, LLP20,853,2061.51%$2,254,231,568-.--%
FMR LLC19,620,3811.42%$2,120,963,186-.--%
Credit Suisse Switzerland18,848,9841.36%$2,037,575,170-.--%
Bank of New York Mellon Corporation18,114,2511.31%$1,958,150,533-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [0.7%] of 1415 Institutional Holders Control24.93%-.--%
Percentage of Barclays and "Associates" Control9.51%-.--%
NOTE: Capital Group manages three funds that control 3.62%.
Vanguard manages three funds that control 2.22%.
Washington Mutual manages a fund that controls 1.49%.
Therefore, the TOP 10 Major Holders control 32.26% of IBM.
Barclays/Associates control 11.00%.
Capital Group controls 9.01%.

2008 by Edward Ulysses Cate
Help Support This Site
Commentary Index:
Home: