What future Sema? Secrecy surrounds likely bid

CSC's move to buy up Schlumberger services business Sema may have hit the rocks, according to industry sources - and it's all a question of money.

While it seems that Sema's UK and Scandinavian operations were a big draw for the outsourcing and consulting company, CSC couldn't afford to take on the loss-making French and German parts of the business.

According to Anthony Miller, analyst at Ovum Holway, the price negotiations may well have been the chief factor that put the deal on ice, with disagreement over the value of the business causing CSC to drop out.

But as for whether this means an end to CSC's involvement in the Sema sale, don't count on it. Miller said: "At the moment the deal's dead in the water but it's not over til the fat lady sings. What we might see is a partial sell off, with Sema dismantled and the bits put on the market separately.

"Not many companies would be interested in buying all of Sema. A continental European group may step in – a French player might buy just the French operation, a German player might take the German business and so on," he added - in which case CSC might be back in the running to pick up the tab for just Sema's UK, and possibly Nordic, business.

CSC and Schlumberger refused to comment on the speculation.

Nevertheless, with CSC more than likely out of the running, who's going to pick up the baton as hot favourite to purchase Sema? Miller thinks Hewlett-Packard is a "credible candidate" for the sale, given Sema would make a good match for the company in outsourcing and infrastructure.

"Do they want to get their hands on the choice government contracts? You bet. Can they pick up Sema's loss-making elements? No," he said.

HP refused to comment on whether they'd entered into negotiations with Schlumberger.