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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (3807)	12/12/2001 1:26:57 PM
From: Kirk ©	Read Replies (1) \| Respond to of 4722

The fact is, under the current arrangement, HP would be awarding cpq a 50% premium for the privilege of bailing them out I keep asking myself why over pay now? Why a premium for a company that seems to have had troubles for many years while others were making hay? Also, why not wait for a better price? If things are really bad, then they might bet Enron or @home type prices for computer company assets. IF things are good, why take the big risk? It seems to me that Carly is swinging for the fence where hitting a double might be more attractive to us shareholders that have to take the actual risk. Kirk out CPQ... I've felt for some time that was a dog stock...

To: Uncle Frank who wrote (3807)	12/12/2001 1:56:22 PM
From: kumar	Respond to of 4722

wonder if there are any long term HP shareholders who support the merger. not this shareholder. cheers, kumar

To: Uncle Frank who wrote (3807)	12/12/2001 4:18:07 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 4722

I think HWP's best strategy right now would be to announce they're not going through with the deal at the current ratio, and pay the $675 M (about 40 cents/CPQ share, I think). CPQ would probably drop another two bucks on the news, and HWP could then make an offer at, say, a ratio of .5 -- far less than the price implied by the current deal, but somewhat better for CPQ shareholders than the current market price of CPQ (and far higher than the price of CPQ if it does indeed drop on the news that the current deal has been called off). HWP would get back its $675 M and then some. There's some risk that the market might not react as desired, but there's risk in the current situation, too. Some arbitrageurs would probably get nailed in the process, which could be a plus. All JMHO. Charles Tutt (TM)