EDS--AFTER THE BELL - Electronic Data Systems surges
NEW YORK, Oct 6 (Reuters) - The shares of Electronic Data Systems Corp. (NYSE:EDS - news) surged following the close of regular trading on Friday after it won a U.S. Navy computer services contract valued at $6.9 billion and which could reach $10 billion.
On the Instinet brokerage system, shares rose to $47-1/2, up more than 17 percent from a regular trading day close of $40-5/8. The gain pushed the stock back to levels seen two weeks ago when it was speculated the company had won the contract.
The initial five year contract, if extended for an optional three years, could bring the potential value of the deal to at least $9.9 billion.
Texas-based EDS will build a single secure ``intranet'', or private Web based on Internet standards, to replace the current patchwork of 200 Navy and Marine computer networks.
The announcement, made after the close of regular trading, appeared to hurt International Business Machines Corp. (NYSE:IBM - news). IBM shares fell $1-1/2, to $114-1/2, from regular session close of $116.
Cisco Systems Inc. (NasdaqNM:CSCO - news) was steady at $56-3/16, where it ended the week. |
