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

To: Steve Porter who wrote (15023)	1/26/1998 3:59:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 97611

Steve: Your concerns may be well founded,let's ask Ekard Pfieffer (sp??)

To: Steve Porter who wrote (15023)	1/26/1998 9:02:00 PM
From: Spots	Read Replies (2) \| Respond to of 97611

DEC is an established company with a large customer base and worldwide name recognition. Anybody who ran UNIX more than just a few years ago probably ran it on DEC equipment and dealt with the DEC field organization. True they let their markets run away (as did IBM for another), but they remain a tremendous force in the market place. Think of it this way; by buying DEC instead of building it, CPQ (1) rescues a company that a heck of a lot of people would rather not see fail due to financial and intellectual investment, (2) gains the accrued benefits of this feeling as well as the existing customer base, (3) gains the organization, and (4), which is my main point here, avoids the very high cost of overcoming (1)-(3) in the market place. This would occur over and above the cost of duplicating the DEC organization, (which IMHO is MUCH higher than the buyout price) and would dissipate the resources of both companies. As a final note, there will surely be major restructuring costs which aren't included in the 9+ billion.