CA hostile bid for CSC appears doomed

Computer Associates (CA) today looked to have called off its hostile bid for Computer Sciences Corporation (CSC), at least for the time being.

In a prepared statement, CA chief executive Charles Wang said that his company would not extend its $108 a share cash offer to Computer Sciences shareholders beyond March 16. Wang said that he had grown concerned about the impact of CSC's defence tactics on his business, his family and the technology industry.

Based on revenue projections released by CSC, CA's bid looks to have been undervalued as well as unwelcome.

Wang has complained of 'news articles appearing with racist overtones', which implied that CA's trustworthiness as a government contractor was suspect because his family were emigrants from China 45 years ago. But in a letter accompanying the official press announcement, Wang appears to concede that the price of CA's offer may have been its undoing.

The revenue projections that look to have won the day for CSC will bounce back at them severely if they prove to have been anti-CA bluster, warn analysts.

Had the CA offer worked out, one of the most powerful computer companies on the planet would have been created.

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