HWP -- Hewlett Packard Message Board

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Technology Stocks : HWP -- Hewlett Packard

HPQ 19.29

-2.7%

1:28 PM EST

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To: Uncle Frank who wrote (3807)	12/12/2001 4:18:07 PM
From: Charles Tutt	Read Replies (1) of 4722

I think HWP's best strategy right now would be to announce they're not going through with the deal at the current ratio, and pay the $675 M (about 40 cents/CPQ share, I think). CPQ would probably drop another two bucks on the news, and HWP could then make an offer at, say, a ratio of .5 -- far less than the price implied by the current deal, but somewhat better for CPQ shareholders than the current market price of CPQ (and far higher than the price of CPQ if it does indeed drop on the news that the current deal has been called off). HWP would get back its $675 M and then some. There's some risk that the market might not react as desired, but there's risk in the current situation, too. Some arbitrageurs would probably get nailed in the process, which could be a plus. All JMHO. Charles Tutt (TM)

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