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

To: Jerome who wrote (94386)	12/20/2001 9:40:02 PM
From: The Duke of URL©	Read Replies (2) \| Respond to of 97611

Compaq files statement with SEC pointing out that if Merger fails, it will have to shoot all those on negotiating team: news.cnet.com

To: Jerome who wrote (94386)	12/20/2001 9:48:56 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Packard says supports change but not Compaq merger SAN FRANCISCO, Dec 20 (Reuters) - A Packard family heir responding to a new Hewlett-Packard Co.(NYSE:HWP - news) campaign for the planned merger with Compaq Computer Corp.(NYSE:CPQ - news) said on Thursday the founding families opposed to the deal were not afraid of change. ADVERTISEMENT ``Our rejection of a specific merger proposal does not in any way imply our opposition to the deal itself,'' David W. Packard, son of founder Dave Packard, whose family foundation holds about 1.3 percent of HP stock, wrote in a statement HP said in a new advertising campaign launched on Wednesday that the company should embrace change, and management in a separate letter told investors their interests could differ substantially from those of the founding families -- who unanimously oppose the $22 billion deal. Packard said that the fruits of past innovation had been shared by the entire company, according to the ``HP Way'', an approach to business that puts a strong emphasis on community. ``By contrast, the current merger plan assumes that layoffs, synergies, economies of scale, purchase of market share, and top-down management can substitute for HP's traditional pattern of sustained innovation by talented employees who trust that their future is aligned with the future of the company,'' he wrote. ``How could the relatives of Bill and Dave possibly not realize the importance of innovation and change at Hewlett-Packard?'' he asked, concluding, ``This is one change that I personally consider too risky to support.'' Chief Executive Carly Fiorina and David Packard both quoted Packard's father, Dave, to support their arguments. Fiorina faces up against HP heirs hold 18 percent of the company's stock and been hard pressed to line up major investors approving her plan. But the HP and Compaq boards have solidly backed the controversial deal, which they say will create a high-end computer and services powerhouse. HP shares closed unchanged at $20.70 and Compaq rose 10 cents to $9.12 on the New York Stock Exchange.