HP, Compaq merger raises eyebrows of customers, investors
September
9, 2001
By JIM BROOKS
Hewlett-Packard Co.'s recently announced plan to buy Compaq Computer
Corp. may be the computer industry's biggest merger, but it
apparently isn't settling well with either company's customers or stockholders.
The combined companies, under the HP name, could overtake Dell, which
is No. 1 among PC manufacturers.
But analysts bring up the fact that neither company has performed to
its potential. Merging them could only complicate things, analysts suggest.
One analyst said the merger might be more of an opportunity for Dell
to grow.
Compaq's stock value dropped 16 percent, and HP lost nearly
one-fourth of its value after the merger deal was announced.
Investors in both companies have voted with their portfolios; in
fact, their stock values have dropped enough so the originally
announced $25 billion merger is now worth about $19 million.
Industry watchers are looking at the merger with caution, though the
real losers may be owners of Compaq or HP computers that wind up as
orphaned products as a result of the merger.
The merger will require the approval of various U.S. and
international regulatory agencies, so we'll be hearing about this
deal for some months to come.
PC BUYING GUIDE. If you're going to be in the market for a new
computer soon, you probably should pick up the October issue of PC
World magazine.
The magazine has a shopping guide that looks not at various computer
models, but various places to buy that new PC. They attempt to answer
the question, "Which is better, shopping in the store or
shopping online?"
The answers will probably surprise you.
PC prices continue to inch downward, and PC World buyers went
shopping for a nicely configured computer system, and their advice?
You better shop around.
Shopping for a PC on the Web was deemed superior in most comparisons.
The areas where in-store shopping won included being able to try
before you buy.
The magazine's tips for PC shopping include:
• Know what you want and know what you want to do with your PC
and how much you can spend.
• Find the right staff. The quality of a merchant's sales staff
can vary from store to store and from person to person. If you don't
find one helpful, find another one.
• Hunt for special deals.
• Buy the monitor separately. You may get a better deal if you
buy a different brand's monitor. If you buy online, you'll save big
on shipping by buying a monitor locally.
• Get the return policy in writing.
• Don't be afraid to play hardball. Ask the salesperson if
there's anything she or he is willing to toss in to close the deal.
PAPAL AUDIENCE AUCTIONED. There's no telling what sorts of
things people will put up for auction on eBay and other auction Web
sites. First it was Jimi Hendrix's boyhood home up for auction
online, then it was Bob Dylan's and then Madonna's home went up for auction.
Scottish whisky makers Chivas Regal are marking the 200th anniversary
of the founding of the brand's creators, Chivas Brothers, with an
auction of 450 lots of some of the "most wanted and unobtainable
items in the world."
The auctions will raise money for charities around the world.
What constitutes the "most wanted and desirable items in the
world?"
For starters, there's a balloon ride with Virgin Airlines tycoon
Richard Branson; a dinner with actor Jeremy Irons; an opportunity to
discuss Shakespeare with British director Kenneth Branagh; a chance
to join the Moscow Circus; visit a diamond mine in Africa, or have an
audience with Pope John Paul II.
Visit eBay.com for details, or www.chivas.com. |
