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

To: D. Swiss who wrote (23930)	4/5/1998 12:40:00 PM
From: PATRICK MCMONIGLE	Read Replies (1) \| Respond to of 97611

D. Swiss Would you have a link to this article, or know where I could find it? I would like to find out how the STREET fells about this merger. For me, being a novice about computers, I like the deal. (1) DEC is a solid company that did not want to change and did not have the courage to down size its work force, or make bold decisions on where it was going as a company. Lack of leadership from management even though its products were world class. (2) DEC over the past couple years has accumulated a large amount of cash. I believe more than 3 billion in cash which will help off set the amount CPQ has to give to DEC shareholders in cash. To me being a novice this is great CPQ gives DEC shareholders there own money back and floats 150 million shares of its own stock. Then CPQ comes in and makes all the personel cuts that DEC knows it should of made years ago and CPQ gets the write off from Uncle Sam. The tax saving hopefully pays for the rest of the cash offering not covered by DEC'S own cash. (3) With DEC'S yearly sales around 13 billion CPQ is only paying less than 1/3 rd of last years sales for the stock portion of the merger. Sounds like a great deal to me, but can CPQ management blend DEC's management into the fold? Anyone have an idea as to how hard that will be?