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Technology Stocks : Compaq

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To: Eddie Kim who wrote (63964)6/23/1999 11:46:00 AM
From: rudedog  Read Replies (1) of 97611
 
Eddie -
The original DEC deal was half cash and half stock, with the stock price pegged at 29.5. CPQ acquired $2B in cash from DEC and $2.4B in tax loss carryforward, so the cash basis was almost a wash. The stock price is about 20% under the trade price. Not sure how to really value that, but it looks like, at present valuation, the real price to CPQ was about $3.5B. But we would have to see the form of the deal to see how it all comes out.
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