Hewlett-Packard confirmed that it is in advanced talks to acquire technology services firm Electronic Data Systems Corp in a deal, with reports saying the deal could be worth between $12 billion to $13 billion.
HP said there could be no assurances that an agreement will be reached or that a transaction will be consummated, the company said in a released statement after the markets closed.
Terms of the deal were not clear but an announcement was expected shortly, people familiar with the situation told the Wall Street Journal.
Shares of EDS rose 28 percent to $24.13 before trading in the stock was suspended. Hewlett Packard shares fell $2.49, or 5.07 percent to close at $46.64.
EDS competes with HP, among others, to provide businesses with ways to improve their performance with information technology.
Competitors in the technology services field include IBM Corp, Accenture Ltd, Computer Sciences Corp, Infosys Technologies Ltd, Tata Consultancy Services Ltd and Cognizant Technology Solutions Corp.