Big hurdle cleared - HP and CPQ merger looks on track

[Ed Hansberry]

<a href="http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US:HWP&Feed=RTR&Date=20020305&ID=1468191">http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US:HWP&Feed=RTR&Date=20020305&ID=1468191</a><br /><br />The Institutional Shareholder Services recommended that its subscribers vote in favor of the Hewlett-Packard/Compaq merger today, just 15 minutes ago. The ISS makes recommendations to over 700 mutual funds and other institutional holders (such as state pension funds) on how to cast their vote on stocks that are merging.<br /><br />Compaq shareholders are apparently pleased. As of this writing, Compaq is up over 11.5% in after hrs trading from the 4:00pm close. Not so HWP shareholders, who have sold off after hrs trimming about 3.25% off of the 4pm price.<br /><br />My bet is that the deal will now close, but we'll know for sure March 19. I don't know, and neither does anyone else, what this will mean to the mobile device divisions of each company. I've heard rumors that no matter what the outcome, each company already has a next generation iPAQ/Jornada in the works. Whether the lines will be merged after that or not is anyone's guess.

[st63z]

ISS support finally? Yeah, that is a pretty big deal, wow...

I wonder what the management will "do" to Walter and the Packards if this thing passes :D

[Ed Hansberry]

I wonder what the management will "do" to Walter and the Packards if this thing passes :D

I hope he stay's on. In post-Enron days, we need directors that don't rubber-stamp the CEO's decision.

[st63z]

Good point! But at the same time a severely divisive and fractured management can impede the execution of a company, I think. Investors recently shunned news of feuding at EMC...

[spg]

I'm hoping this merger will go through, I think that if this merger does not go through it will be bye, bye HP and Compaq as we know them. Might even be bye, bye iPAQ and Jornada too.

[jlp]

Pen Computing Magazine opposes the proposed HP/Compaq merger and supports the Red Herring Editors' Open letter.

See www.pencomputing.com under the January 31st announcements.

These guys know what they are talking about as far as computing goes and they've been in the field for countless years studying the market quite closely and have been publishing their magazine for the last 8-10 years.