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Deutsche Telekom drops out of consortium bidding for German army IT contract
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    • FRANKFURT (AFP) Feb 22, 2005
     German electronics giant Siemens and US computer giant IBM said Tuesday that their partner, T-Systems, a unit of Deutsche Telekom, had pulled out of a consortium bidding to overhaul the German army's -- or Bundeswehr's -- information technoloy infrastructures.

    "The bidding consortium for the so-called 'Herkules' contract will in future comprise only IBM and Siemens Business Services (SBS)," the two companies said in a statement.

    "T-Systems is pulling out of its own accord."

    The Siemens-IBM consortium is only bidder for the 6.5-billion-euro (8.5-billion dollar), after an earlier offer for the "Herkules" project by rival consortium Isic 21, comprising EADS, German telecoms operator Mobilcom and CSC Ploenzke, the German IT services unit of US group CSC, ran aground in July, with the consortium claiming the Bundeswehr's demands were unreasonable.




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