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

To: PCSS who wrote (95383)	2/22/2002 4:06:33 PM
From: Elwood P. Dowd	Respond to of 97611

Bulked Up HP Would Work, Analyst Says by: skeptically 02/22/02 04:00 pm Msg: 274088 of 274089 MARKET TALK: Bulked Up H-P Would Work, Analyst Says 02/22 1:55 PM (DJ) Story 4114 (CPQ, HWP) Edited by Thomas Granahan Of DOW JONES NEWSWIRES (Call Us: 201 938 -5299; All Times Eastern) MARKET TALK can be found using code N/DJMT 1:55 (Dow Jones) When it comes to the computer industry, size does matter, which is why Buckingham Research analyst Jay Stevens supports the proposed merger of Hewlett-Packard (HWP) and Compaq Computer (CPQ). "In industries that become commodity oriented, unit volume is the key to success," he says. H-P is "very successful" in imaging and printing and if the merger wins shareholder approval, it would also be a major player in PCs and servers, he said. The analyst notes that a combined H-P and Compaq would outsource tens of million of units of PCs and printers, and should get "extremely low" manufacturing costs. Stevens said H-P is the only vendor offering a 64 -bit version of UNIX for use on Intel's new IA-64 chips, which will make it easy for Compaq UNIX customers to switch. Finally, Stevens said that at current prices H-P would be paying just over $20 billion for Compaq, which does about $33 billion in revenue. (DLF)