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

To: Mohan Marette who wrote (15028)	1/26/1998 4:05:00 PM
From: Steve Porter	Read Replies (1) \| Respond to of 97611

Mohan, Thank you.. (at least someone is starting to understand where I am coming from). You see I am just wondering what the total bill for all this will be.. I'm thinking something like this: 9.6B -acqusition price ?.?B -lost interest (who know how long it will take to get back 6b in cash) 2.?B - lost productivity due to integrationg concerns. ?.?B - lost agility due to tremendous and sudden size increase ?.?B - lost productivity due to employees worrying about their job (this is a real problem.. easpecially on the DEC side) ?.?B - cash needed for early retirmen/buyouts.. ?.?B - charges for closing/mergin redundant operations.. As you can see there are a lot of ?'s there. The other thing to consider that's I didn't include on the list is ?.?B for companies that like DEC but DON'T like to deal with CPQ. Sure DEC has $13B in revs, but what if $3B of that doesn't want to deal with CPQ and moves to IBM.. all of a sudden it's a really bad deal. When EP said accretive by the end of the year, I bet he was talking along the lines of about $4 to the bottom line.. So you have to figure he and the CPQ managements must be putting the bill around $11b-$12b this year alone for the acquisition, with probably another $4B next year.. that's a log of money for what could be significantly less that $13B in revs.. Steve Cyrix/NSM RUle!