Distribution Execs Speak Out On HP-Compaq Merger
By Edward F. Moltzen
New York - 10:41 AM EST Wed., Dec. 12, 2001
Tech Data CEO Steve Raymund said he thinks Hewlett-Packard and Compaq could remain in good shape if a planned merger falls apart, and said fears of change on the part of the vendors' management might be impeding approval of the merger.
Raymund, speaking at the Raymond James and Associates-CRN IT Supply Chain Conference, also said he has not noticed any impact on product sales since the merger was proposed.
"Management has been confused and biased against innovation and change. Nobody wants to take a risk and start a change in strategy, given any uncertainty," he said.
Raymund also suggested that Compaq's strong product portfolio and market position would enable it to emerge from any scuttled deal in good shape. While acknowledging that Compaq has been operating in a challenging environment, Raymund said: "They are doing pretty well, and I think they will continue to do well."
However, while Raymund said he has noticed no impact on sales as a result of confusion over the merger, another distribution executive said he did.
Art Rhein, president of Pioneer-Standard Electronics, indicated that he is a supporter of the proposed merger and said "the merger will serve both companies well."
However, Rhein said he has seen a blip in some sales since the merger announcement on Sept. 4. "It has caused a bit of hesitation as customers learn what is going on," he said. Once HP and Compaq complete the merger, Rhein said, "things will get back to normal."
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Copyright 2001 CMP Media LLC. |
