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EDS could be considering selling AT Kearney to partners of the firm, according to media reports.
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| Consulting-Times E-zine
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While last month EDS Chairman and Chief Executive Michael H. Jordan called rumours of a possible sale “erroneous,” a company spokes person has confirmed that Jordan discussed a possible sale with Kearney partners last week in Miami. It has been reported that Kearney partners raised the possibility of a management buy-out and Jordan indicated he would be willing to consider an offer.
EDS spokesperson Terry Balluck has said no decisions have been made on price or other particulars and that EDS was not talking with any other potential buyers.
EDS bought Kearney, which made its name advising on supply chain and procurement strategies, in 1995 for about $600 million. It had revenue of $806 million last year, less than 5 percent of EDS' total, and an operating loss of $10 million.
While, divesting Kearney will allow EDS to strengthen its balance sheet and reinvest in its core businesses, Jordan had identified supply chain management as an area in which EDS will expand its business process outsourcing operation. This could be more difficult without Kearney's consulting expertise.
Related Blog post: A.T. Kearney for sale?
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