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

To: PCSS who wrote (96546)	3/26/2002 4:31:27 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Hewlett-Packard, Compaq `On Target' to Complete Deal by May By Peter J. Brennan Palo Alto, California, March 26 (Bloomberg) -- Hewlett- Packard Co., the second-largest computer maker, expects to complete the proposed $19.5 billion purchase of Compaq Computer Corp. in April or May, the companies said in a memo to employees. ``We are on target to reach this goal,'' Hewlett-Packard integration team leader Webb McKinney and his Compaq counterpart, Jeff Clarke, said in the memo sent by e-mail today. Hewlett-Packard has said a preliminary tally shows that a slim majority of shareholders approved the acquisition of Compaq, the second-largest personal computer maker, in voting that ended last Tuesday. Director Walter Hewlett, who opposed the deal, said the vote is too close to call. An official count may take one to three more weeks. About 1,200 workers are on the integration team, up from 900 a week ago, the memo said. The team includes employees from both companies. The new Hewlett-Packard may not be launched on the transaction's legal closing date because a few days may be needed to acquaint staff and line managers with details of the integration plan, the memo said. The shares of Palo Alto, California-based Hewlett-Packard fell 11 cents to $18.01 in late U.S. trading and have dropped 43 percent in the past year. Houston-based Compaq's shares rose 6 cents to $10.69 and have fallen 46 percent in the past year. The price of Compaq shares are 6 percent below Hewlett- Packard's offer price, about half what it was last week before Hewlett-Packard claimed victory in the shareholder vote. The shrinking margin indicates that investors believe the sale will be completed.