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

To: D. Swiss who wrote (15562)	1/29/1998 7:01:00 AM
From: TideGlider	Read Replies (1) \| Respond to of 97611

Thursday January 29, 4:50 am Eastern Time INTERVIEW-Compaq sees strength in Europe By Neal Boudette MUNICH, Germany, Jan 29 (Reuters) - Compaq Computer Corp (CPQ - news) said on Thursday it expects its merger with Digital Equipment Corp (DEC - news) to strengthen both companies' positions in European markets, possibly at the expense of local firms like Germany's Siemens Nixdorf. ''The computer business is a global business. It is best to be a global competitor or to focus on speciality markets,'' said Compaq chief executive Eckhard Pfeiffer ahead of a news conference. He was responding to Reuters questions on what the merger would mean for computer companies that have little presence outside of Europe, where the merger will bring together the top PC vendor, Compaq, with a systems provider that has one of the largest computer service businesses. ''Digital has 8,000 people in service in Europe. That will be a great asset as we compete over here,'' Compaq Europe chief Andreas Barth said in an interview. Compaq has succeeded in competing in the PC business against Siemens Nixdorf, the computer unit of German electronics firm Siemens AG (OTC BB:SMAWY - news; SIEG.F), France's Groupe Bull(BULP.PA) and other European firms who have been able to use their national identities to build solid home bases. Siemens Nixdorf, for example, gets about two-thirds of its sales from Europe but has hardly any PC business in the U.S. or Asia. But Compaq has until now lacked the large computer systems and service offerings to go head-to-head with them for many key corporate accounts. Digital, meanwhile, has a large installed base of such corporate accounts in Europe -- including Reuters Holdings Plc, British Telecom and Credit Suisse -- but has failed to establish a significant PC business here. Barth said that would change with the Digital takeover. ''Now that Digital is part of Compaq, the dynamism we have and our momentum is going to be transmitted to them. It is going to be the spark.'' In total, Digital has about 18,000 employees in Europe and a PC manufacturing plant in Scotland that could help Compaq expand its market share, Barth said. Compaq has eight thousand European employees from a global total of 33,000. Digital's worldwide payroll is 54,000, down from about 130,000 at the beginning of the decade. Barth, a 10-year Compaq veteran and one of the largest holders of Compaq shares and options, is tipped to head the combined organisation. However, he said no decisions have been made. ''That still has to be worked out,'' he said. Pfeiffer said talks about personnel and possible layoffs would begin next week, although no changes would be implemented for several months because the U.S. Federal Trade Commission and then shareholders have to approve the merger. ''But talks can begin. That can begin next week, but we cannot say anything about it now,'' he said. TG