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To: OLDTRADER who wrote (168985)	3/8/2002 8:42:57 PM
From: stockman_scott	Respond to of 176387

Calpers to Vote Against HP-Compaq Merger Friday March 8, 7:27 pm Eastern Time SACRAMENTO, Calif. (Reuters) - Calpers, the biggest U.S. pension fund, said on Friday it would vote against the proposed $22 billion merger of Hewlett-Packard Co. (NYSE:HWP - news) and Compaq Computer Corp. (NYSE:CPQ - news) on grounds the deal would not bring long-term value to its portfolio. The decision comes days after the deal got a thumbs up from Institutional Shareholder Services, an influential independent investor advisory firm, and looked likely to intensify the bitter battle for the largest merger in computer industry history. Hewlett-Packard Chief Executive Carly Fiorina has sought to fend off objections to the merger brought by heirs of HP's founding families. Calpers said it owned 7.6 million HP shares and 6.5 million of Compaq, representing less than 1 percent each of the outstanding shares of the two companies. However, the giant pension fund's moves are closely watched by investors. ``In the final analysis, it is important to state this decision is not a referendum on HP's management team or its CEO Carly Fiorina,'' Calpers said in a statement. ``Rather it is solely based on the merits of this transaction as it relates to Calpers portfolio.'' Institutional Shareholder Services, which is expected to sway 10 percent to 12 percent of HP shareholders, on Wednesday had said Compaq shareholders should vote for the deal, in a postscript which had emboldened management to declare that they had seized the momentum in the bitterly contested merger battle. Hewlett-Packard also cleared the last regulatory hurdle on Wednesday after winning Federal Trade Commission approval for the deal. Walter Hewlett, a dissident HP board member and son of HP's co-founder, has assembled a roughly 20 percent bloc of votes in his intense battle to defeat the proposed merger. Hewlett says Compaq would bloat HP's business with its personal computer division, while HP management says Compaq offers services and technology that would make the combined firm a global powerhouse. Hewlett Packard shareholders are due to vote on the proposed merger on March 19, with Compaq shareholders voting one day later. Shares of Hewlett-Packard closed up 59 cents, or 3.0 percent, at $20.59 on the New York Stock Exchange on Friday, while shares of Compaq closed up 65 cents, or 5.8 percent, at $11.80.

To: OLDTRADER who wrote (168985)	3/10/2002 2:37:02 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Bill, Hi!! You couldn't be more right...Send SMcNealy a box of Kleenex... Sun steamed over report of IBM's lead By Deborah Adamson, CBS.MarketWatch.com Last Update: 12:49 PM ET March 8, 2002 SANTA CLARA, Calif. (CBS.MW) -- Sun Microsystems on Friday disputed an industry report showing that IBM grabbed the lead from the company as king of the Unix server market in the fourth quarter. NEWS FOR IBM Sun steamed over report IBM took lead in Unix servers One researcher, good at forewarning, examines 'churn' Message boards predict a busy day for Sun More news for IBM Quote & NewsChartsFinancialsAnalystsOptionsSEC Filings Quote delayed 20 minutes. Disclaimer IDC said IBM (IBM: news, chart, profile) captured a Unix market share of 26.9 percent in the fourth quarter of 2001, compared with 26.8 percent for Sun Micro (SUNW: news, chart, profile). It's the first time since the last quarter of 1998 that IBM took the crown, which had been Sun Micro's. The server and storage giant said IDC's report contains several inaccuracies. In addition, Sun said the "negligible" lead could be explained by the margin of error in the calculation. The company also pointed to a recent analyst firm's report that gave Sun the lead in Unix. "We believe IDC's numbers are questionable," said Shahin Khan, chief competitive officer. "We believe they've inflated IBM's numbers." An IBM spokesman waved away Sun's objections. "The report is clear affirmation of IBM's leadership in the server market," he said. "The IDC numbers are what they are. IDC reports them, we don't." "Sun seeks to accept those numbers when it's favorable to Sun," he said. "Casting aspersions (on an analyst firm) is not the way to go." For the full 2001, however, Sun still retained the lead in Unix with a 30.8 percent share compared with 22.5 percent for IBM. Hewlett-Packard (HWP: news, chart, profile) was second, with 25.3 percent. Global server market declines As for all servers worldwide, IBM came in first with revenue market share of 32 percent in the quarter. Compaq (CPQ: news, chart, profile), which plans to merge with H-P, came in second with 17 percent. H-P, Sun and Dell (DELL: news, chart, profile) rounded out the top five, with 14 percent, 12 percent and 7 percent market shares, respectively. In the fourth quarter, factory revenue for the worldwide server market declined by 26 percent to $12.6 billion from the year before, IDC reported. Unit shipments dipped 7 percent to 1.14 million units. But the report pointed out that the rate of decline in the last quarter improved sequentially, pointing to a bottoming of the server market and a return to seasonal trends in 2002, according to IDC. For the full year of 2001, worldwide server revenue decreased by 19 percent to $49.8 billion with unit shipments dipping by 2 percent. IBM was the lead vendor, with a 28 percent share; Compaq had 16 percent and H-P came in at 14.4 percent. Sun and Dell were at 13.8 percent and 7 percent, respectively. While Sun Micro retains its Unix server lead for the full 2001, the company strongly disputed the fourth-quarter findings. The company said it would make an announcement at 1 p.m. EST. Sun said another tech research outfit, Gartner Dataquest, anointed the company as the "clear leader" in worldwide Unix server revenue, in a report issued two weeks ago. There, Sun trounced IBM by $600 million in the fourth quarter and nearly $3 billion for the full year. Khan pointed out that IBM reported a 35 percent sequential gain in its pSeries line in the fourth quarter while IDC credited Big Blue with a 71 percent increase. Also, IBM reported combined server and storage revenue of $4.07 billion in the quarter but IDC credited the entire number to just servers, he added. Meanwhile, IDC's own report showed that Sun it has shipped more than twice the number of Unix systems for IBM and Hewlett-Packard combined, Khan said. Even if the IDC report was correct, the small lead should be reported as a tie due to the margin of error, Sun said. With Sun still in the lead for the full year, why make a fuss and risk looking like sour grapes? "We're serious about these things," Khan said. "Our position in the market is something that's worthy of protection." Sun Micro has raised its objections with IDC, which did not return calls for comment. Shares were up more than 13 percent to $10. Separately, Sun filed a $1 billion lawsuit against Microsoft (MSFT: news, chart, profile), charging it with "anticompetitive" behavior. Story. Also, the company reaffirmed its third-quarter outlook late Thursday, adding that it's making progress towards returning to profitability in the last quarter. See full story.

To: OLDTRADER who wrote (168985)	3/11/2002 10:05:07 AM
From: Dorine Essey	Respond to of 176387

Thought you would like to see this. Dorine 09:34 ET DJ MARKET TALK: Tech Thoughts From Merrill 11 Mar 09:34 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 9:33 (Dow Jones) A few thoughts from Merrill's Global Tech Strategist, Steve Milunovich: 1) CIOs are shifting out their expectations for a spending recovery from the second half to 2003; 2) more Hewlett-Packard (HWP) and Compaq (CPQ) users are against than for the merger; 3) IBM is gaining share; 4) Sun Micro's (SUNW) momentum has waned, though users are not running for the exit; Dell Computer (DELL) has the best sales and service force. (TG).

To: OLDTRADER who wrote (168985)	3/18/2002 6:16:22 PM
From: stockman_scott	Respond to of 176387

Merger Madness... concentric.net

To: OLDTRADER who wrote (168985)	3/18/2002 10:32:24 PM
From: stockman_scott	Respond to of 176387

a friend emailed this to me... ___________________________________ 'Twas the night before merger, when all through the halls, Not an employee was working, there were no more calls. The proxies were voted by shareholders with care, In hopes that the count would soon be near. Analysts were nestled all snug in their beds, While visions of proxy-votes danced in their heads. And Carly in her 'kerchief, and Walter in his cap, Had just settled down for a long game of baccarat. When at the Flint, there arose such a clatter, They sprang from their game to see what was the matter. Away to the elevator, Walter flew like a flash, spinned through the revolving doors and started to dash. The lights on the cameras made a certain glow, gave the appearance of sunlight to the proxies below. When, what to Carly's eyes did appear, but a count going badly, with a deadline near. It was a little old counter so live and so quick, she knew in a moment it must be a trick. More rapid the count began to grow, it looked very bad and Carly must go. "Now, Intern! now, Part-time! now, temp and rookie! Start counting and counting and counting, no hookie. No breakfast, no lunch, no dinner tonight, until all is counted and it is made right. To the top of the Flint! to the top of the hall! Now count away! count away! count away all!" So throughout the Flint the counters they flew, With the room full of proxies, Carly and Walter too. And then, in a twinkling, we all heard on the floor, a counter not counting, no, it was a snore. Just one, then two, then three, then four. The counters were finished counting many hours before. Walter was impressed the count was so close, his calculations gave Carly 40%, at most. No, it was closer than that with all of the votes, so Walter had something to show besides musical notes. A bundle of proxies he had flung on his back, And he looked like a peddler just opening his pack. His eyes -- how they twinkled! his dimples how merry! As the bag was so heavy, he needed help just to carry. A wink of his eye and a twist of his head, Soon he showed to us all just what he did. He spoke not a word, but went straight to his work, And pulled out more proxies; then turned with a jerk, And laying his finger aside of his nose, And giving a nod, the green proxies arose. He sprang to his feet, to his team gave a holler, and they all cheered in victory, the merger a gonner. But I heard him exclaim, as he drove out of sight, "It was a bad merger for all and Carly, good night." --Brought to you by a proud HP family member. This poem contains foreward looking statements and should not be considered a prophecy of the events to occur during the proxy count. Please do not buy a hundred-million shares of HP tomorrow based on anything that you read in this post. This is an attempt to be funny by someone that has no kids, no animals, and too much time on his hands.

To: OLDTRADER who wrote (168985)	3/19/2002 10:55:39 AM
From: stockman_scott	Respond to of 176387

Hewlett-Packard CEO Awaits Fate as Holders Vote on Compaq Deal By Cesca Antonelli Cupertino, California, March 19 (Bloomberg) -- Hewlett- Packard Co. Chief Executive Officer Carly Fiorina has spent six months campaigning for the computer maker's $20.8 billion purchase of Compaq Computer Corp., and investors say a loss in today's shareholder vote may lead to her resignation. ``She cannot stay in the job if she loses,'' said L. Roy Papp, whose L. Roy Papp & Associates owns 800,000 shares among its $900 million in assets and supports the purchase. ``If she wins this, she's a heroine.'' Dissident director Walter Hewlett is waging a proxy fight to block the deal, saying it threatens the computer maker's profit. The son of co-founder William Hewlett portrays Fiorina as a misguided leader who has bungled forecasts, shifted strategy and failed to prove she can integrate the computer makers. He wants to replace her with someone who doesn't need to ``learn on the job.'' The personal nature of the battle has made the vote as much about Fiorina as it is about the purchase, and she can't afford to lose, investors say. While the final tally may take weeks, today's meeting in Cupertino, California, probably marks the biggest event of her career. ``She's clearly made a holy war out of this merger,'' said Bruce Garelick, whose Loomis Sayles & Co. owns the stock and will vote against the deal. ``She would consider it a personal defeat if it didn't go through.'' Referendum? Before today, investors controlling about 22 percent of the shares have publicly sided with Hewlett, and 8.9 percent have said they'll support Fiorina's plan. Fiorina has refused to comment on whether she'll resign and won't say if she wants Walter Hewlett to leave the Palo Alto, California-based company's board if the purchase is approved. Fiorina's predecessor, Lewis Platt, opposes the deal and has lobbied some analysts against it. Hewlett-Packard board members, except Walter Hewlett, have said they support her. ``She has made this vote a referendum on herself,'' Walter Hewlett said on a conference call last week. ``I don't think she will have the credibility to lead the company'' if the transaction is voted down, he said. Fiorina's Plan Hewlett-Packard, founded in a Palo Alto, California, garage in 1939, has grown into the world's second-largest computer seller behind International Business Machines Corp. Fiorina was brought aboard in July 1999 to jump-start the company as it fell behind rivals in server computers and Internet services. The stock has dropped 26 percent since Fiorina, 47, started. The former Lucent Technologies Inc. executive last year decided that buying Houston-based Compaq was the best way to plug the holes in the computer maker's lineup. ``Hewlett-Packard has never accepted being less than the best we can be, and we're not about to start now,'' she said March 6 at a speech in Palm Springs, California. Walter Hewlett has said buying Compaq wouldn't do enough to build up the areas Fiorina is targeting and would instead make the company too dependent on low-end PCs. Since he announced his opposition in November, he's met with more than 100 investors. He and the other founding family members control 18 percent of the shares. Lighting Fires The bickering among executives and the personal attention mean investors have been given more information than is typical in big transactions, analysts say. Even as Institutional Shareholder Services sided with Fiorina, the world's largest proxy adviser lauded Hewlett for forcing the company to release such detailed plans. ``He has really put management's feet to the fire,'' said Doug Altabef, managing director at Matrix Asset Advisors, which owns the stock in its $800 million portfolio and opposes the purchase. Walter Hewlett said the company has spent $150 million fighting him, though Hewlett-Packard disputes that figure. Walter Hewlett and the company each have bought dozens of newspaper advertisements to win investor support. In one ad, Hewlett says the drop in the company's shares since the purchase was announced Sept. 3 is ``the ultimate stockholder advisory service.'' The stock has dropped 17 percent since the deal was disclosed. The company put out a list of ``unanswered questions'' the day of a Walter Hewlett conference call and has criticized his plan to focus more on printers as a ``press release'' without a real strategy. Long Wait? Hewlett-Packard shares rose 20 cents to $19.25 yesterday. Compaq rose 3 cents to $10.36 and now trades at about 15 percent below the value of the acquisition offer, compared with 9.4 percent on March 8 and 25 percent at year-end. The intense debate has made it difficult for some shareholders to decide how to vote, investors said. ``These things don't happen when you sit down at a meeting; they happen in hallway conversations, over lunch,'' said Paul Zelisko, who oversees proxy voting for Brinson Partners, which owns 1.3 million shares and won't disclose its position on the transaction. ``This thing was debated.'' With 900,000 stockholders and 1.94 billion shares out, it may be several weeks before the final count comes in from IVS Associates Inc. IVS organizes all the green and white proxy cards submitted and makes sure that only the last one is counted for each investor that votes. ``This is kind of corporate America's version of Bush-Gore 2000,'' said Michael Nemeroff, who runs the acquisition practice at law firm Vedder Price. ``The count, the recount, the protests and the certifications are going to be very interesting.'' _____________________