Hmmm, HP & EDS vs IBM
Posted last night on Reuters was this article:
HP in talks to buy EDS to compete with IBMHewlett-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.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.
. . .
"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.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
NOTE: Dodge and cox manages two funds that control 2.88%.
Symbol Name Of Corporation HPQ
Major
HoldersHewlett Packard Co. (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 FMR LLC 150,776,987 6.12% $7,611,222,303 -.--% State Street Corporation 114,197,113 4.63% $5,764,670,264 -.--% Barclays Global Investors UK Holdings Ltd 111,451,708 4.52% $5,626,082,219 -.--% Dodge & Cox Inc 98,888,100 4.01% $4,991,871,288 -.--% Vanguard Group, Inc. (The) 75,928,797 3.08% $3,832,885,672 -.--% AXA (Paris, France) 67,618,029 2.74% $3,413,358,103 -.--% State Farm Mutual Automobile Insurance Co 42,070,800 1.71% $2,123,733,984 -.--% Wellington Management Company, LLP 41,644,761 1.69% $2,102,227,535 -.--% Capital Research Global Investors 38,950,000 1.58% $1,966,196,000 -.--% Bank of New York Mellon Corporation 36,046,796 1.46% $1,819,642,262 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [1.5%] of 1205 Institutional Holders Control 31.54% -.--% Percentage of Barclays and "Associates" Control 10.61% -.--%
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%.
Dodge and Cox manages two funds that control 8.59%.
Symbol Name Of Corporation EDS
Major
HoldersElectronic Data Systems (As of 30-Jun-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Dodge & Cox Inc 61,743,990 12.13% $1,279,952,912 -.--% Hotchkis & Wiley Capital Management, LLC 58,125,150 11.42% $1,204,934,359 -.--% Barclays Global Investors UK Holdings Ltd 48,711,374 9.57% $1,009,786,783 -.--% Franklin Resources, Inc 32,549,103 6.39% $674,742,905 -.--% State Street Corporation 32,297,664 6.34% $669,530,574 -.--% Brandes Investment Partners L.P. 19,867,376 3.90% $411,850,704 -.--% Vanguard Group, Inc. (The) 14,758,060 2.90% $305,934,583 -.--% Blackrock Investment Management LLC 13,880,521 2.73% $287,743,200 -.--% AXA (Paris, France) 12,528,228 2.46% $259,710,166 -.--% Brahman Capital Corp. 7,085,849 1.39% $146,889,649 -.--% % of Shares Held by All Insider and 5% Owners: 11% -.--% Top 10 [2.5%] of 401 Institutional Holders Control 59.23% -.--% Percentage of Barclays and "Associates" Control 25.03% -.--%
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.
NOTE: Capital Group manages three funds that control 3.62%.
Symbol Name Of Corporation IBM
Major
HoldersInternational Business Machines (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 State Street Corporation 64,351,846 4.65% $6,956,434,552 -.--% Barclays Global Investors UK Holdings Ltd 49,106,194 3.55% $5,308,379,571 -.--% Capital World Investors 47,973,500 3.47% $5,185,935,350 -.--% Vanguard Group, Inc. (The) 40,307,114 2.91% $4,357,199,023 -.--% AXA (Paris, France) 37,921,818 2.74% $4,099,348,525 -.--% Capital Research Global Investors 27,852,500 2.01% $3,010,855,250 -.--% Wellington Management Company, LLP 20,853,206 1.51% $2,254,231,568 -.--% FMR LLC 19,620,381 1.42% $2,120,963,186 -.--% Credit Suisse Switzerland 18,848,984 1.36% $2,037,575,170 -.--% Bank of New York Mellon Corporation 18,114,251 1.31% $1,958,150,533 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [0.7%] of 1415 Institutional Holders Control 24.93% -.--% Percentage of Barclays and "Associates" Control 9.51% -.--%
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
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