October 31, 2001 — (WEB HOST INDUSTRY REVIEW) — Comdisco, Inc. (comdisco.com) announced yesterday that it has signed an agreement to sell its Availability Solutions (TechnologyServices) business to Hewlett-Packard Company (hp.com) for $750 million. The agreement, which is supported by Comdisco and the Official Committee of Unsecured Creditors, is subject to approval by the U.S. Bankruptcy Court for the Northern District of Illinois, which the company intends to seek at a hearing scheduled for Nov. 7, 2001.
As previously announced on July 16, 2001, Comdisco entered into an agreementwith HP to sell the Availability Solutions business for $610 million. Thatagreement was subject to higher or otherwise better offers in aCourt-authorized auction process. Following the auction held on Oct. 11,Comdisco, with the support of the Creditors’ and Equity Committees, approveda bid by SunGard Data Systems, Inc. for $825 million as the highest orotherwise best offer.
A lawsuit seeking to enjoin the transaction with SunGard on antitrustgrounds was filed by the Department of Justice in the U.S. District Courtfor the District of Columbia on Oct. 22, 2001. The Creditors’ Committeewithdrew its support of the SunGard bid in favor of an unsolicited $750million offer by HP received on Oct. 22, 2001 after the commencement of theDOJ lawsuit.
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