Why H-P's EDS Deal Makes the Street Nervous

Clearly, the Street is not crazy about Hewlett-Packard’s (HPQ) plan to acquired Electronic Data Systems (EDS). In two days, the Street has knocked about 10% off H-P’s stock price, chopping its market cap by about $12.5 billion, almost equal to the $13.9 billion deal price. The obvious question is, why?

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Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

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