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Technology Stocks : Compaq

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To: Night Writer who wrote (65585)7/23/1999 11:25:00 AM
From: rudedog  Read Replies (3) of 97611
 
NW -
Thinking about the move this morning - we heard last week that Rosen had hammered EP in summer of 98 for a variety of problems, one of which was no succession plan. A month later Capellas is hired. This whole thing may have been orchestrated better than we think.

1 - get a strong manager, a potential CEO type, and put him in a place where he can learn all aspects of the business quickly without creating political ill-will (the CIO slot).

2 - give him the opportunity to get involved with broader issues (many have told me that Capellas was involved from the get-go in "peer review" of most senior executive decisions).

3 - Tighten the screws on EP as soon as Rosen is sure the new guy can fill the bill

4 - When EP folds, do a reasonable due diligence, but put your real candidate in charge of reorganization and day to day operations.

Maybe I am reading too much into this but it seems to hold together.
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