Speculation grows on fate of SchlumbergerSema business continuity division

Expert sources in the business continuity market have informed Continuity Central that they expect to see Schlumberger divest itself of its SchlumbergerSema business continuity division before the end of the year.

Schlumberger has already signed a binding agreement to sell the majority of its SchlumbergerSema business to Atos Origin. The transaction proceeds will amount to approximately $1.5 billion consisting of €400 million in cash and a fixed number of 19.3 million of Atos Origin common shares. However, the transaction does not include the business continuity division, which forms a discrete and standalone entity within the group.

Continuity Central sources believe that it is unlikely that SunGard will be a bidder for the division, as any potential purchase could be expected to be blocked by market regulators for anti-competitive reasons, however Hewlett Packard could be a potential suitor and a venture capital backed management buyout is also thought to be a distinct possibility.

When asked for comment, a Schlumberger spokesperson said that the company would not comment on speculation, but confirmed that the business continuity division was one of several retained SchlumbergerSema businesses which were being considered for divestiture or IPO.

•Date: 17th October 2003 •Region: W.Europe/UK/World •Type: Article •Topic: BC markets
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