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

To: Elwood P. Dowd who wrote (94039)	12/8/2001 1:26:51 PM
From: Jim McMannis	Respond to of 97611

HP-Compaq deal in dishabille Packard Foundation just says non By Mike Magee, 08/12/2001 10:25:26 BST HP'S BIGGEST SHAREHOLDER dealt CEO Carly Fiorina a terrible blow as it voted against the firm's proposed takeover of Compaq. The Packard Foundation, with a 10 per cent holding, is the biggest HP shareholder and a number of other shareholders are now likely to follow suit. But CEO Fiorina appeared to want to fight on and attempt to change the minds of the Packard Foundation and the other shareholders. Members of the Hewlett and Packard families are also opposed to the deal. If the deal collapses, Fiorina's job will be untenable and such a swing will also put the job of Compaq's CEO Mike Capellas in jeopardy too. Both had staked the future of their respective companies on the takeover and now both are likely to be judged harshly should the HP-Q deal collapse. It is likely to collapse without the support of the Packard Foundation. Where this now leaves Compaq's business model is very unclear. One hundred and eighty days ago tomorrow, and before news of the merger and Compaq's decision to cede its Alpha technology leaked, Mike Capellas said that he would transform the company. Tomorrow, Day Zero, we will will look in detail at the different ways Compaq has been transformed over the last six months. µ

To: Elwood P. Dowd who wrote (94039)	12/8/2001 1:28:02 PM
From: Jim McMannis	Respond to of 97611

RE:"Why would Carly even attempt this merger without first getting the blessings of The Packard Foundation and Walter Hewlitt?" To buy time to milk out a golden parachute?

To: Elwood P. Dowd who wrote (94039)	12/8/2001 1:49:48 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

El, The history of this deal reflects both boards were informed and aware of the details from step one. At one point, a board stopped the process and then restarted the process. Hewlett is on the board of directors. So Hewlett supported the development and voted for the final deal. Shortly after that, he changed his mind and his vote. From a human prospective, I suspect something close to the following happened. The HP directors weren't sensitive to Hewlett's concerns during the development stages of this deal. They bull dozed his support and afterward someone got smart with him. Thinking back on it, Hewlett got angry. Now he is pulling the world down on top of those who were not sensitive and pushed him into the deal. If he wins the votes, those who ignored his concerns will leave. The replacements will know that Hewlett's concerns are important. NW