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Technology Stocks : Compaq

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To: Ibexx who wrote (4788)8/17/1997 9:55:00 PM
From: Leo Francis   of 97611
 
Ibexx, CPQ is striving for increased vertical integration. They could buy SIII for 1-1.5 billion cash. (+-$25) They can also use their stock as currency, as it is at the level they want/need for transactions like this.

I do agree with Steve, that CPQ's track record of buyouts stinks. But most of those buyouts were with prior management teams.

But I also disagree with Steve's opinion that CPQ will be busy digesting Tandem, thus no further buyouts by CPQ in the short term. CPQ is shopping big time. And the Tandem merger will be a piece of cake. CPQ will announce another purchase, probally this year.

As far as SIII being a viable candidate, it makes complete sense to me.

All in my opinion, Good Trading. LF
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