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

To: Piotr Koziol who wrote (95735)	3/5/2002 8:31:44 PM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

Rockville, Maryland, March 5 (Bloomberg) -- Institutional Shareholder Services Vice President Patrick McGurn comments in an interview on Bloomberg TV about the proxy adviser's support for Hewlett-Packard Co.'s plan to buy Compaq Computer Corp. On the combined company's revenue forecast: ``At the end of the day, we really looked at this deal, and decided that it was one where the numbers proposed by the company are achievable.'' On whether the integration will go smoothly: ``It's not just enthusiasm. We were convinced by the end of the process -- and we spent hours meeting with management and their integration teams -- that they could accomplish their goals.'' On the tone of the debate with Walter Hewlett: ``It's kind of sad. We did start off with a very substantive discussion, and it has degenerated in recent weeks. It's likely to degenerate even further into name calling. That's not something we like to see.'' On whether Chief Executive Carly Fiorina should stay: ``That's not our call. They've got a big sales job left to do. There's still a major sales job that remains to be done by the H-P and Compaq management. Our clients have free will. They can make up their own minds, and they will.''

To: Piotr Koziol who wrote (95735)	3/6/2002 12:29:55 AM
From: Night Writer	Read Replies (1) \| Respond to of 97611

All mergers make smooth transition promises and plan beautiful futures. How many deliver on their plans? Look at the good will write offs, charges for head count reductions, and employee retention bonuses. Those big one time items don't add value to a stock. This transition isn't going to be smoother then other well planned transitions. HP is a company with problems. They believe buying Compaq will solve those problems. Strategic acquisitions can help a company, but acquisitions do not solve problems. Acquisitions create a new set of challenges. Smoothly run companies have a difficult time dealing with major acquisitions. When a company with problems makes a major acquisition, the acquisition challenges them and solves few problems. The result is an outside consulting company’s dream project.