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Technology Stocks : EDS - Recent pullback a buy opportunity??? -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Liberty who wrote (1118)	8/7/1998 10:38:00 AM
From: Wolverine	Read Replies (1) \| Respond to of 1841

EDS Announces Proposed Secondary Offering of Common Stock by GM Hourly-Rate Employees Pension Plan PLANO, Texas, Aug. 7 /PRNewswire/ -- Electronic Data Systems Corporation (NYSE: EDS - news; EDS) announced today that the General Motors Hourly-Rate Employees Pension Plan intends to sell up to 10 million shares of EDS common stock in a public offering. The transaction will include a 15 percent over- allotment option. The sale of the stock by the Hourly Plan is being directed by the United States Trust Company of New York, an independent trustee of the Hourly Plan. The offering will be made only by means of a prospectus. No shares in the offering will be sold by EDS. Standard & Poor's Corporation has announced that it plans to add the EDS common stock to the S&P 500 Composite Stock Price Index following the close of trading on Monday, August 10, 1998. The Hourly Plan has advised EDS that a material portion of the shares to be offered will be offered to index funds whose portfolios are primarily based on the stocks included in the S&P 500 Index, in order to fill a portion of the anticipated demand arising from such inclusion. The Hourly Plan currently holds approximately 126.5 million shares of EDS common stock, or approximately 25.7 percent of the outstanding shares. ''The proposed offering is part of our continuing strategy to diversify the Hourly Plan's holdings in a manner that is prudent and consistent with maintaining an orderly market for the EDS common stock,'' said Charles E. Wert, head of U.S. Trust's Special Fiduciary Division. In addition, EDS announced that retirement arrangements for Lester M. Alberthal, Jr., the company's Chairman and Chief Executive Officer, will adversely impact earnings in the third quarter of 1998 by an estimated $0.05 per share, primarily attributable to vesting of restricted stock units previously granted, a five-year consulting agreement, and pension and other related benefits. On August 6, 1998, EDS announced that Mr. Alberthal informed the Company's board of directors that he has decided to retire from the company, but will continue as chairman and CEO until a successor is identified.