Momentum Continues for Merger of HP and Compaq
Institutions, Customers, Reseller Group See Benefits in Combination
PALO ALTO, Calif.--(BUSINESS WIRE)--March 14, 2002--Momentum and support for the Hewlett-Packard Company (NYSE:HWP - news) merger with Compaq continued to grow today as several institutional investors, a large industry association for resellers and customers indicated their support of the merger.
Today's announcements included:
Banc One Investment Advisors intent to vote in favor. Steve Salopek, a Banc One fund manager, said the money management firm is voting for the deal because a combined HP and Compaq is stronger than a standalone HP. ``By combining the two, HP acquires intellectual property in the server, storage and services business,'' Salopek said, adding that there are also significant cost reductions to be had. Banc One owned 5.1 million HP shares as of the end of the year.
The State Teachers Retirement System of Ohio told CNET News.com it planned to vote its shares in favor of the deal. The Ohio teachers group, which owns 3.5 million HP shares and 4.3 million Compaq shares, said it met with both sides before making its decision earlier this week. Representative Laura Ecklar said the staff of the teachers' fund made its decision based on several factors, including the amount of integration planning the two firms had done, their confidence in the projected cost savings as well as faith in management.
The ASCII Group, Inc. (ASCII), the world's largest community of independent solution providers and value-added resellers (VARs), today announced its support for the merger. ``It is in the best interests of HP and Compaq shareholders to vote in favor of this merger,'' said Alan Weinberger, chairman and chief executive officer of The ASCII Group. ``It is simply a good business decision. Combined, the new HP will have a VAR force in the small- and medium-sized business sector second to none. This market already is a very large and important one for both companies. These `feet-on-the-street' partners provide hardware, software and services to the small business market and give a definite edge to manufacturers whose customers are left out in the cold by direct sellers whose only goal is to make the sale.''
Deloitte Consulting today announced the results of a comprehensive, independent survey of 2,354 Information Technology (IT) decision-makers on the proposed merger. A strong majority of survey respondents -- all of whom are HP and Compaq customers -- view the merger of HP and Compaq as having a positive impact on their business. |
