HP to buy EDS ?

Just seen this on the WSJ:

Hewlett-Packard Co. was close to a deal to acquire Electronic Data Systems Corp. for between $12 billion and $13 billion, according to people familiar with the situation.

The terms of the deal were not immediately clear but an announcement was expected soon, the people said. EDS, which provides consulting and technology outsourcing services, had a market value of about $9.5 billion, based on Friday's closing price of $18.86

Why would HP do this?

A deal would bolster Hewlett-Packard's competitive position versus rival International Business Machines Corp. (IBM) as a provider of services such as tech consulting and customer support. The transaction could spark further large deals in the technology sector as cash rich, mature companies such as Hewlett-Packard look to acquisitions for growth.

Hmm...the system integration and outsourcing industry is a low margin game and gettiing worse as they all chase each other to the bottom line of each big contract. I can see why EDS would want it (27% jump in share price) but does HP really need to buy into even more of a commodity business, and look more like IBM? (EDS makes c 3.5% margin on $20bn, HP makes c 7% margin on $100bn). Isn't the really shape changing play to do something different to the way the rest of the industry is structured, go for growth industries in comms and media instead?

Or is it the only way HP will get anyone to buy their tins

Update - FT reports HP R&D is now going more "D" side, reducing range of projects to the more rapidly commercialised - more signs that current management thinks future success comes from looking exactly the same as the rest of the industry?