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: Night Writer who wrote (95037)	1/31/2002 3:53:19 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

U.S. Expected to Okay HP Bid for Compaq WASHINGTON (Reuters) - Hewlett-Packard Co.'s (NYSE:HWP - news) purchase of Compaq Computer Corp. (NYSE:CPQ - news) is meeting little opposition from staff attorneys at the U.S. Federal Trade Commission (FTC), sources familiar with the case said on Thursday. Lawyers for the agency have raised few competition concerns about the $22.3 billion deal, and competitors have not been actively lobbying against it, the sources said. ``It's a done deal,'' said one source. ``All these markets are tremendously competitive.'' The HP-Compaq combination would create the world's biggest maker of personal computers. It also would give the companies a far stronger position against International Business Machines Corp. (NYSE:IBM - news) and Sun Microsystems Inc. (Nasdaq:SUNW - news) in the market for computer servers. The PC industry has a history of cut-throat competition and the absence of any strong opposition from within the industry makes it unlikely that the government will oppose the deal, according to another source. ``It makes it a little harder for them to raise objections,'' this source said. The European Commission (news - web sites) (EC) approved the takeover on Thursday without conditions, saying the companies would continue to face strong competition in Europe from a number of credible rivals, including IBM, Dell Computer Corp. (Nasdaq:DELL - news) and Fujitsu-Siemens. It said this, along with the absence of significant barriers to entry and the practice of non-exclusive contractual relationships between retailers and manufacturers would prevent the new HP from attempting to raise prices significantly. The FTC released a statement on Thursday acknowledging it has been cooperating closely with the European antitrust authorities on the case. But the FTC added that the case ``remains under investigation by the FTC, and that the EC's decision does not prejudice in any way the outcome of the assessment in the U.S.''