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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: Eddie Kim who wrote (63964)6/23/1999 12:31:00 AM
From: Ada Marie  Respond to of 97611
 
If anyone is interested, Compaq purchased Digital on January 23, 1998 for $ 9.6 billion.

"The transaction will be the largest acquisition in the history of the computer industry, valued at $9.6 billion based on the January 23, 1998 closing price of Compaq common stock. Under the terms of the transaction, shareholders of Digital will receive $30 in cash and approximately 0.945 shares of Compaq common stock for each share of Digital stock. Compaq will issue approximately 150 million shares of Compaq common stock and $4.8 billion of cash. Under the terms of the agreement, Digital will become a wholly owned subsidiary of Compaq."



To: Eddie Kim who wrote (63964)6/23/1999 12:39:00 AM
From: Ada Marie  Read Replies (1) | Respond to of 97611
 
Question...As a minority CMGI shareholder, would CPQ be able to leverage their ownership to data mine the array of web sites, advertising, and services that CMGI participates in?



To: Eddie Kim who wrote (63964)6/23/1999 1:02:00 AM
From: PerryA  Read Replies (3) | Respond to of 97611
 
Getting 3 Billion for Altavista plus a minority stake in CMGI would be very nice.

The rumors are a deal worth up to $3 billion, including any stake in CMGI.

PerryA



To: Eddie Kim who wrote (63964)6/23/1999 11:46:00 AM
From: rudedog  Read Replies (1) | Respond to of 97611
 
Eddie -
The original DEC deal was half cash and half stock, with the stock price pegged at 29.5. CPQ acquired $2B in cash from DEC and $2.4B in tax loss carryforward, so the cash basis was almost a wash. The stock price is about 20% under the trade price. Not sure how to really value that, but it looks like, at present valuation, the real price to CPQ was about $3.5B. But we would have to see the form of the deal to see how it all comes out.