Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: hlpinout who wrote (94099)	12/10/2001 6:08:16 PM
From: hlpinout	Read Replies (2) \| Respond to of 97611

VARs Say Merger Opposition Adds To Confusion By Joseph F. Kovar CRN Palo Alto, Calif. - 8:18 PM EST Fri., Dec. 07, 2001 The intention of the David and Lucile Packard Foundation to vote against the proposed HP-Compaq merger adds to the confusion surrounding the deal, solution providers said. The Foundation announced on Friday it intends to vote its block of shares in Hewlett-Packard against the merger. "I don't think they get it," said Rich Baldwin, president and CEO of Nth Generation Computing, a big Compaq solution provider based in San Diego that just this week also picked up HP as a vendor. Baldwin said he has met with people from both the HP and Compaq sides, and his feeling is the merger as a good move. "There's good synergy and complementary strengths for both," he said. "The merger will mean better market share for both." Regardless of how the merger turns out, Baldwin said Compaq will continue to do well. "They have several leadership products, including ProLiants and StorageWorks products sitting at number one in several areas," he said. Another solution provider, however, disagreed, saying the confusion caused by the merger and the reaction of the David and Lucile Packard Foundation will hurt Compaq. "I see Compaq in more trouble than HP, especially on the high end," the solution provider said. "Compaq just lost six months momentum on the high end. Six months ago, they said they will move off its Alpha chip in favor of Intel. Now they're combining with HP. Customers don't know what to do." Management teams from both HP and Compaq are working together in what they term a cleanroom on deciding how the post-merger combined entity will look. One member of the merger team, Leigh Morrison, western regional vice president for Compaq, just joined that team last week, Baldwin said. "She manages the west, Compaq's most successful sales team," Baldwin said. "She's in a very powerful position to plot the future of an $80 billion company." Unfortunately for both companies, they are taking a huge risk by putting key personnel in the cleanroom, said Baldwin, who has talked to several of them. "Right now, they can't go back to their jobs," he said. "They had to cut all ties to their companies, and can't even talk to co-workers. Worse, if the merger falls through, they can't work for either company for five years." -------------------------------------------------------------------------------- Copyright 2001 CMP Media LLC.