LinkedIn pays $18m over lawsuit; CSC to buy UXC for $428m; HP approves split

Global IT services company CSC has revealed plans to purchase the Australian IT company UXC for a sum of $428 million, according to Computerworld.

CSC reportedly expects the purchase to be completed by February 2016.

The deal is subject to a five-week due diligence process, board approvals and regulatory and court approvals, Computerworld reported.

ZDnet quoted a statement from UXC as saying: “The board of UXC has determined that it is in the interests of its shareholders to engage further with CSC with a view to finalising an agreement to implement the proposed transaction."

UXC managing director Cris Nicolli was quoted as saying: “The proposal from CSC recognises the potential of UXC and is a testament to the strong business we have built; the board of UXC is supportive of this move.

“All of us at UXC are tremendously proud of what we've achieved to date, and the proposal from CSC represents a potential next stage in the evolution of our company."

According to the AFR, the deal would see UXC shareholders receive cash payments of $1.28 per share, made up of $1.26 cash per share and the payment of a franked dividend of 2c per share.

Nicolli told the AFR that at least one other company aside from CSC had indicated an interest in buying UXC.

“It would be fair to say that we have had significant number of overtures, which led us to have a closer look at the process of what we should do," Nicolli was quoted as saying.

“Some of them are ambit claims and others are very meaningful, but it is fair to say that there was a competitive process going on, and CSC has put its best foot forward and offers a very strong complementary fit around customer base, expertise and geographic coverage."

Nicolli was quoted as saying it was “possible" that another bid for UXC would emerge now that CSC has announced its plans.

LinkedIn pays up over email lawsuit

LinkedIn has agreed to pay US$13 million (about AU$18 million) in order to settle a class action lawsuit over sending emails to its members' contacts without permission, the Wall Street Journal (WSJ) reported.

According to Fortune, the proposed US$13 million settlement — which is subject to approval by a judge — is meant to compensate users who signed up for LinkedIn's 'Add Connections' feature between September 2011 and October 2014.

Fortune explains that users sued LinkedIn in California in 2013, claiming that the 'Add Connections' feature violated their right of publicity and was an unfair business practice. The lawsuit apparently cited comments from LinkedIn users who believed the feature was harming their professional reputation, rather than improving it.

According to the WSJ, LinkedIn denies any wrongdoing in the matter.

“Ultimately, we decided to resolve this case so that we can put our focus where it matters most: finding additional ways to improve our members' experiences on LinkedIn," the WSJ quoted a statement from LinkedIn as saying.

Hewlett-Packard approves split

The board of Hewlett-Packard has approved a plan that will see the company split into two listed entities — one specialising in computers and printers, and the other corporate hardware and services — according to a Reuters report.

Hewlett-Packard expects the split to be completed on 1 November this year, the story said.

According to the report, Hewlett-Packard will be renamed HP and will handle the computers and printers business, continuing to trade under its current ticker symbol.

Hewlett Packard Enterprise — which will handle corporate hardware and services — will begin trading on the New York Stock Exchange on 2 November under the symbol 'HPE', Reuters said.

Hewlett-Packard reportedly expects Hewlett Packard Enterprise to start trading on a 'when issued' basis on or around 19 October using the ticker symbol 'HPE WI'.

Hewlett-Packard shareholders will receive one share of Hewlett Packard Enterprise for each Hewlett-Packard share held as of 21 October, according to the Reuters story