Stock Watch: EDS Deal Sends Ariba Soaring

Shares of business-to-business e-commerce solutions company Ariba (Nasdaq: ARBA) climbed nearly 15 percent on Monday, gaining 24-13/16 to 194. The move followed the company’s announcement of a major joint venture with information technology services company EDS (NYSE: EDS).

The companies are teaming up to create business-to-business Internet markets that will offer consortium-based purchasing for big clients such as Bethlehem Steel, Clorox, Entergy Services, Fort James Corporation, Kellogg, Prudential Insurance, Tyco Health Group, as well as EDS and four other Fortune 100 companies. The joint venture, known as EDS CoNext, is targeting more than $160 billion in managed spending each year.

What makes this new venture especially interesting for investors is that EDS CoNext might be taken public in a deal that could very well increase shareholder value for both Ariba and EDS. Shares of EDS climbed 3 to 62-1/2 on Monday.

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