Affiliated Computer Services responds to Deason, Cerberus on acquisition proposal

By Lisa Kerner

Charlotte, N.C., March 21 - Affiliated Computer Services, Inc. confirmed receipt of a proposal from chairman of the board Darwin Deason and Cerberus Capital Management, LP to acquire the company for $59.25 per share in cash.

In response, the company has formed a special committee of independent directors to evaluate Affiliated Computer Services' strategic alternatives in addition to the proposal, according to a company news release.

The board, in a letter to Deason, said it has "threshold concerns with two aspects of the proposal." One is Deason's agreement to work exclusively with Cerberus to negotiate a transaction that includes a customary market check process only after a definitive agreement has been executed.

As a result, the board asked that the exclusivity arrangement be voided.

Two, Deason's agreement with Cerberus involves voting arrangements with respect to Deason's company shares. The independent directors asked Deason for details of the agreement with Cerberus.

Affiliated Computer Services, based in Dallas, provides business process outsourcing and information technology services in the United States.

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