UPDATE: DXC stock surges amid reported takeover interest

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Shares of DXC Technology Co.
DXC,
+5.97%

were up 7% Thursday after Reuters reported that Atos SE
ATO,
-13.05%

has made a bid for the information technology company. Atos, based in France, confirmed the news. “Following recent market rumors about a potential transaction involving Atos, the Company confirms that it has approached DXC Technology concerning a potential friendly transaction between the two groups in order to create a Digital Services Leader benefitting from global scale, talent and innovation,” the company said in a statement. “In assessing this opportunity, Atos will apply the financial discipline which it has always followed in its acquisition strategy. There can be no certainty at this stage that this approach will result in any agreement or transaction. Further announcement will be made when appropriate.” The company did not offer details of price but Reuters said it is reportedly willing to pay upwards of $10 billion for DXC in what would be the company’s largest deal yet. A deal could drive cost synergies and give Atos a greater U.S. presence, the story said, citing multiple unnamed sources. Atos shares were trading more than 6% lower in France. DXC shares have gained 54% over the past three months as the S&P 500
SPX,
+1.39%

has risen about 11%.



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