According to a release issued by HP, terms of the transaction have not been agreed upon, but the parties are contemplating a cash-and-stock acquisition at a price in the $17 billion to $18 billion range.

The combination is expected to be accretive to HP's current 15 percent revenue growth guidance, mildly dilutive to its cash earnings per share in fiscal year 2001 and approximately neutral to cash EPS in fiscal year 2002, the first full fiscal year of operations.

"The acquisition of the PwC consulting practice would complement HP's offerings by further strengthening the linkage between business process transformation and technology implementation," HP stated.

Because PwC are HP's independent accountants it is expected that the audit engagement will be terminated in light of auditor independence requirements, HP said.

HP, which has 86,000 employees worldwide and a revenue of $42.4 billion in its 1999 fiscal year, said it is uncertain whether the discussions with PwC will result in any transaction or on what terms a transaction may take place.

-- SmartPros News Staff

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