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

To: John Koligman who wrote (94290)	12/17/2001 12:27:00 PM
From: John Koligman	Respond to of 97611

Looks like MC is trying to dig up anyone he can to comment on the deal these days... Compaq Co-Founder Voices Strong Support for H-P Deal By GARY MCWILLIAMS Staff Reporter of THE WALL STREET JOURNAL HOUSTON -- Joseph "Rod" Canion, who cofounded Compaq Computer Corp. and served as its chief executive until 1991, broke his silence on the company's sale to Hewlett-Packard Co. with an endorsement. Now an investor and chairman of online library startup Questia Media Inc., also in Houston, Mr. Canion said, "Here, fundamentally, are two great companies that could potentially combine and become a stronger company if they do it well.'' In a letter to both boards earlier this week, H-P dissident director Walter Hewlett asked the two companies to cancel the deal in light of investor sentiment and the "enormous unhappiness" it has created. "If the merger is brought forward for a vote, there is a very high probability that it will be defeated,'' Mr. Hewlett wrote. Mr. Hewlett, the son of co-founder William Hewlett, has launched a proxy fight to halt the deal. Family members and trustees of the David and Lucile Packard Foundation have joined him in opposing the deal, creating a voting bloc of about 18% opposed to the deal. However, Mr. Canion called such vocal opposition "saber rattling'' and an emotional response to the $25 billion deal. "To oppose it from an emotional standpoint bothers me,'' he said. "The leaders of these companies have thought a lot about it. To go against their best judgment on an emotional basis doesn't make a lot of sense to me.'' Walter Hewlett Urges Boards to Drop Deal; Hackborn Resigns From Hewlett Foundation (Dec. 14) As H-P's Compaq Acquisition Falters, Fiorina Faces Major Sales Challenge (Dec. 12) H-P Blames Foundation's Risk Aversion For Its Rejection of Planned Compaq Deal (Dec. 11) Compaq Continues to Back H-P Deal But Is Beginning to Rethink Its Future (Dec. 11) Mr. Canion, had previously stayed mum on the deal, but said he supported the sale since it was announced in early September. He agreed to publicly acknowledge that support after being requested to speak with a reporter by Compaq CEO Michael D. Capellas. Despite criticism of product overlap, in markets where the two are strongest, such as printers and Intel-based network servers, there is little duplication. Through a lot of smart and hard work, you could take the strengths of each company and build a new company,'' he said. The sharp slide in computer sales creates a strong reason to consider the combination, and position the new H-P to for the next market upturn. "You might look at it differently in a strong economy or a strong computer market,'' said Mr. Canion. "As bad as this market has gotten, you have to look at how do you strengthen yourself in difficult times? Often you can gain strength in a difficult market by making moves,'' he said.

To: John Koligman who wrote (94290)	12/17/2001 12:29:32 PM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

Mergers FAIL - I prove it! by: chung_ho_fat (27/M/HONG KONG) Long-Term Sentiment: Buy 12/16/01 05:34 pm Msg: 79952 of 80047 more times than not mergers of near equals (not acquisitions) rarely actually provide Shareholders an equity benefit. The history is clear as there is a HUGE HEAP PILE of failed mergers compared to a handful of successful ones. Compaq & DEC...failed Novell & WordPerfect...failed 3COM & USRobotics/PALM...failed Wellfleet & Synoptics...failed AT&T & NCR...failed Sperry & Burrough...failed BayNetworks & Northern Telecom...failed JDS & uniphase & eTEK...failed AMD & NexGen...failed Acquisitions of smaller, creative, innovative companies have worked for Microsoft, Intel, Cisco, IBM, EMC, Oracle, SAP, Motorola and even HP(somewhat)... Please point to the successful High-Tech Mergers (not acquisitions)...I dare you!