Comdisco To Sell Availability Solutions Business To HP for $750 [...]
Comdisco To Sell Availability Solutions Business To HP for $750 Million
📅 - Comdisco, Inc. (comdisco.com) announced yesterday that it has signed an agreement to sell its Availability Solutions (TechnologyServices) business to Hewlett-Packard Company (hp.com) for $750 million. The agreement, which is supported by Comdisco and the Official Committee of Unsecured Creditors, is subject to approval by the U.S. Bankruptcy Court for the Northern District of Illinois, which the company intends to seek at a hearing scheduled for Nov. 7, 2001.
As previously announced on July 16, 2001, Comdisco entered into an agreementwith HP to sell the Availability Solutions business for $610 million. Thatagreement was subject to higher or otherwise better offers in aCourt-authorized auction process. Following the auction held on Oct. 11,Comdisco, with the support of the Creditors' and Equity Committees, approveda bid by SunGard Data Systems, Inc. for $825 million as the highest orotherwise best offer.
A lawsuit seeking to enjoin the transaction with SunGard on antitrustgrounds was filed by the Department of Justice in the U.S. District Courtfor the District of Columbia on Oct. 22, 2001. The Creditors' Committeewithdrew its support of the SunGard bid in favor of an unsolicited $750million offer by HP received on Oct. 22, 2001 after the commencement of theDOJ lawsuit.
In light of these events, the Court adjourned the Oct. 23, 2001 sale hearingto Nov. 7 and approved notice procedures designating a sale to HP as analternative sale transaction. Comdisco also announced yesterday that, inlight of the adjourned hearing and to accommodate potential bidders, it hasextended the deadline for bids for its Leasing businesses to Thursday, Nov.8, 2001 at 12:00 noon (CST). The auction for the Leasing businesses isscheduled for Nov. 15 and 16, and the Bankruptcy Court hearing for apotential sale or sales has been set for Nov. 28, 2001 at 2:00 p.m. (CST).As previously announced on August 31, 2001, Comdisco received Court approvalfor the potential sale of its Leasing businesses, excluding its European ITleasing operations.
As previously announced on July 16, 2001, Comdisco entered into an agreementwith HP to sell the Availability Solutions business for $610 million. Thatagreement was subject to higher or otherwise better offers in aCourt-authorized auction process. Following the auction held on Oct. 11,Comdisco, with the support of the Creditors' and Equity Committees, approveda bid by SunGard Data Systems, Inc. for $825 million as the highest orotherwise best offer.
A lawsuit seeking to enjoin the transaction with SunGard on antitrustgrounds was filed by the Department of Justice in the U.S. District Courtfor the District of Columbia on Oct. 22, 2001. The Creditors' Committeewithdrew its support of the SunGard bid in favor of an unsolicited $750million offer by HP received on Oct. 22, 2001 after the commencement of theDOJ lawsuit.
In light of these events, the Court adjourned the Oct. 23, 2001 sale hearingto Nov. 7 and approved notice procedures designating a sale to HP as analternative sale transaction. Comdisco also announced yesterday that, inlight of the adjourned hearing and to accommodate potential bidders, it hasextended the deadline for bids for its Leasing businesses to Thursday, Nov.8, 2001 at 12:00 noon (CST). The auction for the Leasing businesses isscheduled for Nov. 15 and 16, and the Bankruptcy Court hearing for apotential sale or sales has been set for Nov. 28, 2001 at 2:00 p.m. (CST).As previously announced on August 31, 2001, Comdisco received Court approvalfor the potential sale of its Leasing businesses, excluding its European ITleasing operations.
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