Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    Large Shareholder Backs HP-Compaq Merger

    By
    eWEEK EDITORS
    -
    March 14, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Hewlett-Packard Co. gained additional backing for its buyout of Compaq Computer Corp. as Putnam Investors, a large shareholder in both computer makers, announced it will support the merger.

      Merger proponents today also touted the release of a new survey of IT professionals, commissioned by HP and conducted by Deloitte Consulting, that found a majority of HPs and Compaqs customers view the merger as having a positive impact on their business.

      Putnams announcement that it will support the merger marks a significant victory for proponents of the controversial $22 billion deal scheduled to be put to a vote of shareholders next week.

      The investment group is Compaqs largest shareholder and the fourth largest institutional investor in HP, which is in the midst of a bitter proxy fight over the merger.

      “We believe the merger enhances the combined companies strategic and competitive positions and offers financial benefits to shareholders,” Putnam said in a press release.

      Putnams announcement came only hours after merger proponents were dealt a serious blow when HPs third largest institutional shareholder, Banc of America Capital Management, disclosed that it would vote against the deal.

      While the boards of both computer makers have approved the merger, the deal must win the support of more than 50 percent of each companys shareholders in order to go forward. While Compaqs investors are widely expected to vote in favor of the deal next Wednesday, the outcome of HPs vote next Tuesday remains in doubt, due in large part to strong opposition by the heirs of HPs co-founders.

      Walter Hewlett, a member of HPs board and son of late HP co-found Bill Hewlett, is leading a highly publicized proxy fight to kill the merger, contending the deal is a misguided attempt to revive the struggling computer maker that will ultimately seriously undermine shareholder value.

      While much of the controversy has focused on the interest of shareholders, a new survey released today highlighted customer support for the deal.

      The survey of IT customers of HP and Compaq showed that a majority think the merger will benefit them in two critical areas, in the companies capability to fulfill end-to-end needs with a fuller range of products and services, and lower technology costs overall.

      “Despite the rhetoric, the success of this merger fundamentally hinges on the new companys ability to deliver value to customers,” said Brian Fugere, principal at Deloitte Consulting, which compiled the report. “Our survey shows a strong endorsement from both Hewlett-Packard and Compaq customers. Notably, in 24 out of 26 areas surveyed, customers believe the merger will have a positive or strongly positive impact on them.”

      The survey was conducted via a blind Internet poll of a cross-section of 2,354 HP and Compaq customers in North America, according to Deloitte Consulting. The survey was paid for by HP, designed by Deloitte, and data was collected by Harris Interactive, the consulting firm best known for The Harris Poll.

      The survey, which focused on more than two dozen customer-service areas, showed that enterprise users have largely favorable views of the deal.

      “In 24 out of 26 areas surveyed,” Fugere said, “customers believe the merger will have a positive or strongly positive impact on them.”

      For more on the proposed HP-Compaq merger, go to eWEEKs special report, “HP Courts Compaq.”

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×