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

To: Elwood P. Dowd who wrote (95521)	2/27/2002 5:36:19 PM
From: Elwood P. Dowd	Respond to of 97611

Money Managers Give Fiorina Thumbs Up By Steven Burke, CRN New York 5:15 PM EST Wed., Feb. 27, 2002 Hewlett-Packard Chairman Carly Fiorina's spirited defense of the embattled HP-Compaq merger got a thumbs up from at least a few of the several hundred money managers who attended HP's Analyst Day Wednesday. "I'm more convinced now than I was before," said John Herndon, vice president of Aquila Management, a New York-based investment company." I wasn't as clear about what Compaq brought to the table before today." Herndon said his view of the proposed deal was mixed going into the meeting. "I wanted to see first-hand, in my gut, whether this was a personal or professional commitment [by Fiorina]. Absolutely, it's both," he said. Herndon said it is extraordinary how detailed the integration plans are for the two companies. "It's sort of like a kamikaze dive," he said of the HP-Compaq integration plans. "They are going at it like it's going to go through. They are totally committed." Another money manager, who did not want to be identified, said he was inclined to support the deal before the analyst meeting but the HP team's argument reinforced that decision. "We have a long-term view. A lot of the analysis is very short-term," he said. The deal is particularly attractive because of the $2.5 billion in cost reductions the merger would make possible, he said. Both companies have said the combined company can rid itself of redundancies and cut its workforce by 15,000 employees. Another fund manager, who also requested anonymity, said the economic downturn is helping drive momentum for the merger. When asked after the meeting if she felt she had swayed some Wall Streeters, Fiorina said, "I think we have a compelling case if people focus on the substance."