EDS faces SEC stock and earnings probe
Inland Revenue favourite, Electronic Data Systems, will face an informal inquiry by chief US corporate watchdog, the Securities and Exchange Commission.
The SEC issued the request yesterday afternoon for information regarding, ‘EDS’ purchase and settlement of forward contracts related to its common stock and information regarding events leading up to its recent earnings guidance announcement.’
A statement on the company’s web site confirms that EDS intends to cooperate fully with the SEC and that it is confident the inquiry will confirm its actions were proper.
EDS has had a bad run of late after restated third quarter profits were placed at between $58m and $74m, down from a July forecast of $364m.
Shares in the company continue to slide – a last quote put their value at $14.23 each, down 5% on the day.
At its height, EDS shares traded at $72.