HP/Compaq Uncertainty hurts Channel
by: skeptically 11/12/01 05:26 pm
Msg: 260997 of 261010
crn.com
Raymund: HP, Compaq Uncertainty Not Good For Channel
By Steven Burke, CRN
Las Vegas
4:36 PM EST Mon., Nov. 12, 2001
Tech Data Chairman and CEO Steve Raymund said the uncertainty surrounding the proposed merger of Hewlett-Packard and Compaq is "not good for the channel, solution providers or the marketplace."
Raymund, who is slated to meet with Compaq CEO Michael Capellas here at Comdex, hopes the question of whether a key shareholder--the David and Lucile Packard Foundation--supports the deal is answered quickly.
"Everything is up in the air right now, pending a decision by the Packard Foundation," Raymund said. "My hope is the foundation makes up its mind very quickly. If they vote in favor of it, I expect everyone to get in line behind them."
The David and Lucile Packard Foundation, which owns 10 percent of HP, has said it hasn't decided whether it will support the deal.
Both David Packard and Walter Hewlett, the sons of the two HP co-founders, have come out against the proposed $20 billion acquisition of Compaq by HP. Shares of both companies have plunged since the deal was first announced Sept. 4.
Raymund said the most important thing is to get the deal done quickly and remove the "cloud of uncertainty" that could impact sales of HP and Compaq products.
He added that if the deal does go through, there are some significant benefits for solution providers because of the combined resources of both companies. "They could optimize the supply chain even better because of their scale," he said.
Raymund said he is confident the top executives overseeing the merger of the two companies can pull off the necessary integration.
Kevin Gilroy, HP's vice president and general manager, North American commercial channels, urged solution providers to keep focused and not be distracted by the deal.
"My message to solution providers is to keep doing the job and don't get churned up in it or ruminate about it," Gilroy said.
Gilroy said he strongly believes the deal will be completed. He said he hasn't seen any incursions by Sun Microsystems or IBM into the HP solution provider base. |
