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

To: Richie who wrote (22380)	3/18/1998 10:35:00 AM
From: John Koligman	Read Replies (2) \| Respond to of 97611

Richie - This has been hashed over by the thread some time ago, others do think you might be on to something here! The DEC deal is $30 cash + .945 shares of CPQ stock. Bottom line is that the deal is substantially cheaper (to CPQ) now in comparison to when it was announced because there is no provision for adjustments based on the price of CPQ stock. Thing is, we still need DEC shareholders to approve, as the price plunges I suppose this gets more iffy. John

To: Richie who wrote (22380)	3/18/1998 12:17:00 PM
From: Stephen	Read Replies (1) \| Respond to of 97611

Ritchie, it was suggested on CNBC I believe, that many companies who have a major merger do one time charge-offs attributable to the merger, though often they include and are to account for over inventory. This was the reason given for 3Com recently having to restate some prior quarters after the US Robotics merger. Maybe Compaq had this in mind with the DEC merger ... but given what 3Com had to do, perhaps the plan was abandoned... hence the announcement ?? I don't know ... just food for thought.