HP and EDS settle shareholder lawsuits

Settlement brings merger closer

HP's buyout of EDS will create a services powerhouse

HP and EDS have settled five outstanding lawsuits as the firms approach the final stages of their merger.

The shareholder lawsuits arose as a result of proposed buy-out.

As part of the settlement, the company has confirmed that the acquisition will not be completed before EDS reports a last quarter's financial results, which will deliver a final dividend to shareholders.

Last week HP received European Commission approval for the proposed $14bn buy-out of the services giant.