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

To: Ram Seetharaman who wrote (51492)	3/4/1999 9:27:00 AM
From: rupert1	Read Replies (3) \| Respond to of 97611

Ram: What I am puzzled about (subject to more information from the Press Conference) is why IBM should want to help DELL compete with it in the high-end space. I can see it wants DELL's services business. Also, why would IBM want to give up any of its PC space to DELL? I can see it might want DELL's marketing ability in the PC space. Maybe there is something to the idea that a more consistent rationale in this deal would be in a merger to remove the inherent competition in this pact and create enormous cost savings for both parties. But maybe neither are prepared for that and this is second best. CPQ will not sit still. It's genius and motivation is corporate growth. It will seek to expand its services business and its margins by doing something similar - garnering services business from current competitors either through pacts, mergers or acquistions. I also think it will beef up its neworking capacity possibly with an acquistion or merger.