The proposed deal would help shore up HP's services business, which generated $16.6 billion in fiscal year 2007, they said.
EDS offers a range of information technology services from business process outsourcing like billing and customer care to infrastructure services, including data centres and server management.
Meanwhile, in a release issued here HP confirmed that it is engaged in advanced discussions with EDS regarding a possible business combination involving the two companies.
However, it added that there can be no assurances that an agreement will be reached or that a transaction will be consummated. HP does not intend to comment further until an agreement is reached or discussions are terminated.
