After several failed takeovers, and the odd accounting scandal, Computer Sciences is now facing a break-up.
CS is attracting potential activist investors looking to take advantage of a weak share price to push for a breakup.
In recent months the $4.5 billion outfit's shares have dropped 40 percent. You can now pick up a low-milage share, with one little old lady owner for less than $30.
But the reason for that is that its government services business faces an uncertain outlook as the US government plans to retrench its government spending and send the country into a recession.
CS is also caught up in an accounting investigation, shareholder lawsuits and a long dispute with the UK National Health Service regarding alleged delays in developing healthcare IT systems.
According to Reuters, activist investors are meeting in secret, doing funny handshakes and maths and sharping their daggers and looking at breakups and other ways to boost Computer Sciences' sagging share price. CS is also worried about it and is to release its own plan of attack.
Most of the outfit's dosh is make on its outsourced computer data base activities. What is likely to take a hammering is the government work.
CS insists that the two arms of the outfit belong together anyway. The US Securities and Exchange Commission is in the middle of a probe related to Computer Sciences' accounting errors, which involve some dodgy accounts in its Nordic region.
In Blighty, the government is reviewing whether a contract to install next-generation healthcare IT systems in the country should be continued after Computer Sciences missed deadlines. The company said this week it would likely meet the U.K. health agency in September to discuss the matter.
Activists would also have to wait as all 10 Computer Sciences board members have been just re-elected for a full year. Any campaign would probably start in about nine months.