Tags: Acquire | Compaq | for | $25 | billion

HP to Acquire Compaq for $25 billion

Tuesday, 04 September 2001 12:00 AM

Quoting executives close to the negotiations, the newspaper said the deal will be announced Tuesday.

The merger, if completed, will produce a computer giant, second only to IBM, which is the world's largest computer company. It's "a bold move to grow as the computer business struggles with shrinking sales," the Times said.

Forced by plunging profits, both Hewlett-Packard and Compaq recently announced job cuts.

Analysts describe the deal as part of Hewlett-Packard's chairwoman Carleton S. Fiorina 's strategy to pull her company out of trouble through bold moves. Hired away from Lucent Technologies in 1999, Fiorina is seen as a shrewd businessperson who is not afraid of taking risks.

She was encouraged by a new operating system for computer servers, developed jointly by Intel and Hewlett-Packard. Compaq has already announced it plans to buy this technology, which can compete with technologies developed by IBM and Sun Microsystems.

Based in Houston, Compaq began in 1982 as a maker of personal computers. It soon became one of America's biggest computer companies but has been hurt seriously by the ongoing price war in personal computers.

After the merger, Fiorina is expected to head the new company, which will be based in Hewlett-Packard's hometown of Palo Alto, Calif.

Copyright 2001 by United Press International. All rights reserved.

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Quoting executives close to the negotiations, the newspaper said the deal will be announced Tuesday. The merger, if completed, will produce a computer giant, second only to IBM, which is the world's largest computer company. It's a bold move to grow as the computer...
Acquire,Compaq,for,$25,billion
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2001-00-04
Tuesday, 04 September 2001 12:00 AM
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