GM Actively Pursuing Telecommunication Partner for EDS
ALAN L. ADLER
May. 21, 1993
OKLAHOMA CITY (AP) _ General Motors Corp. is actively seeking a telecommunications partner for its Electronic Data Services Corp. computer services subsidary, GM Chief Counsel Harry Pearce said today.
Pearce, who as executive vice president oversees the EDS and GM Hughes Electronics subsidiaries, confirmed earlier reports that talks between EDS and communications giant British Telecom had broken off.
''They did exist and they are over,'' Pearce said during a break in GM's annual stockholder meeting.
But Pearce said EDS is ''looking at every alternative'' to find a partner for EDS that would give it access to the telecommunications business.
''We have been looking at other alternatives ever since and before'' the British Telecom talks, he said. ''There's just no question that the best in the world will be integrated with the telecommunications industry.''
Pearce said ''all the obvious suspects,'' including American Telephone & Telegraph are on GM's list of potential partners.
''We wouldn't rule out active discussions with more than one,'' Pearce said.
He said there is no specific timetable in place to find a partner, but ''We aren't going to let grass grow under our feet.''
GM purchased EDS for $2.5 billion in 1984 from its founder Ross Perot.
The discussions with British Telcom also focused on British Telcom acquiring an equity stake in EDS for cash that could help GM finance its future car products.
Pearce said any number of options with a telecommunications partner could result, including a joint venture.