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

To: Elwood P. Dowd who wrote (94999)	1/30/2002 1:00:04 PM
From: Elwood P. Dowd	Respond to of 97611

Compaq CEO fired up for H-P merger By Chris Kraeuter, CBS.MarketWatch.com Last Update: 12:22 PM ET Jan. 30, 2002 SAN FRANCISCO (CBS.MW) -- Compaq CEO Michael Capellas said he feels better about the PC maker's merger with Hewlett-Packard than he did 4-6 weeks ago, even with an ongoing proxy fight and a decision due out from the European Union's antitrust body. Capellas, speaking at the Banc of America Securities technology conference in San Francisco (see full conference coverage), said he's been meeting with institutional investors during the past several weeks to discuss the merger. "We put enormous due diligence into this deal," he said. "This deal looks better the deeper you get into it." He declined to comment on a recent meeting with Institutional Shareholder Services, a group that advises investors on proxy matters. He said the deals merits, the strategic and economic factors behind the move, sell the transaction. "If you tell that story right, the deal stands on its own," he said. Uncertain path The future of the merger remains unknown as investors debate its merits. With such mixed opinion, Capellas said it's important to show early success once the deal is complete. Without being specific, he said, "There are a number of market leadership positions where we would go after additional share gains." He also said investors could monitor the combined company's costs and profitability. The two companies expect $2.5 billion in cost savings. Capellas said his biggest fear was a loss of revenue in the fourth quarter in the initial wake of the deal. But that didn't materialize. "It doesn't look like either company lost momentum," he said. Shares of Compaq (CPQ: news, chart, profile) rose 38 cents, or 3.4 percent, to $11.60. Hewlett-Packard (HWP: news, chart, profile) slipped 15 cents to $20.76.