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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (81619)	8/30/2001 1:06:41 PM
From: Steve Lee	Read Replies (1) \| Respond to of 99985

If the M&A activity is done thru stock swaps, then why is valuation a prob so long as both parties are similarly overvalued?

To: Doug who wrote (81619)	8/30/2001 1:31:00 PM
From: Bruce Brown	Read Replies (1) \| Respond to of 99985

B.B: A buisness downturn provdes the oppurtunity for bargain shopping . GE's Jack Welsh the maestro & his team built GE up on that basis. First things first. It's Jack Welch, Jr. (real name John Welch), not Welsh. Yes, he did use the acquisition method of increasing GE's business scope and to diversify their company. It's one of the better "mutual fund" stories in America. There has been no major m&a activity in the TECH sector which indicates either the prices are too high and or the CEO's have not done any homework about the strength of their rivals. G.E's Jack welsh ,the maestro, built GE thru m&a when buisness cycles took down Cos. Not to disagree, but perhaps you haven't kept up with all of the acquisitions over the past few years within the technology industry. They were happening left and right. Begin with Cisco to view the acquisitions they did in 1999, 2000 and 2001 to date. Plenty in the software industry as well in the past few years. I'm sure there will be some more going forward. Proprietary companies usually prefer to develop within, rather than acquire 'cheap merchandise'. When the CRM game went more or less to Siebel Systems, the other major players were acquired by Nortel and PeopleSoft. Of course, Peregrine is acquiring Remedy. As other niche games move to dominant players emerging, the other players will most likely be acquired by some company - if the doors are not folded completely. Pehaps you are looking for a plethora of consolidation via M&A activity which may or may not come in the months and quarters to come. Time will tell. Integration within technology - especially proprietary technology - is not an easy task no matter how cheap the acquisition may appear. BB

To: Doug who wrote (81619)	9/3/2001 11:07:59 PM
From: Boplicity	Read Replies (2) \| Respond to of 99985

You wanted it here it is! <<Reports: Hewlett-Packard Buying Compaq Computer .c The Associated Press SAN JOSE, Calif. (Sept. 3) - Hewlett-Packard is buying fellow computer maker Compaq Computer for an estimated $25 billion in stock, a deal meant to bolster two companies that have been saddled with sagging profits and massive job cuts, according to reports. The deal would create a computer behemoth that would rival industry leader IBM. In its most recent 12 months, Hewlett-Packard reported revenues of $47 billion, while Compaq had revenues of $40 billion. That is only slightly lesser than IBM's $90 billion. The New York Times and Wall Street Journal both reported the deal on their Web sites late Monday, citing people close to the negotiations. Spokesmen for both companies declined to comment to the newspapers. The reported deal comes as the computer industry suffers through a downturn that has seen sales shrink considerably. Hewlett and Compaq have both seen their stocks suffer drastically in recent months. Compaq's stock closed at $12.35 on the New York Stock Exchange on Friday, down 76 percent from its peak in early 1999. Hewlett-Packard's stock is worth $23.21, down 66 percent from its high last summer. When announced job reductions, of 8,500 jobs at Compaq and 9,000 at Hewlett-Packard, are completed, employment at the companies will be about 62,800 at Compaq and 87,000 at Hewlett-Packard.>> It's about time, we will see more! B