Subject: Re: off-topic: Compaq buys DEC
To: None <port-vax@NetBSD.ORG>
From: Gordon Zaft <zaft@artisoft.com>
List: port-vax
Date: 01/26/1998 13:40:12
At 02:13 PM 1/26/98 -0500, you wrote:
>
>  It's a sad, sad day.  See http://www.digital.com/flash/f192/.
>
>
>                        -Dave McGuire
>                         mcguire@neurotica.com
>
>

	Here's the scoop from the Digital site, for those without Web access.

Compaq to Acquire DIGITAL for $9.6 Billion

Compaq Computer Corporation (NYSE: CPQ) and Digital Equipment Corporation
(NYSE: DEC) today announced the completion of a definitive merger
agreement. As Compaq continues its drive to become the global leader in
enterprise computing solutions, this latest acquisition greatly accelerates
its momentum and strengthens its value proposition to customers.

"We put tremendous value on the customer relationships Digital has
cultivated over the past 40 years. We are committed to supporting these key
customer relationships by investing in Digital's strategic assets,
particularly its worldwide service organization, as well as its 64-bit
leadership with Alpha microprocessors, OpenVMS, Digital UNIX and Windows NT
enterprise systems, open storage and software products," said Eckhard
Pfeiffer, president and CEO, Compaq. 

"Digital's focused enterprise strategy coupled with demonstrable
improvements in operational performance make this a timely choice for us,"
Pfeiffer said. In Digital's recently reported second quarter, profits
doubled and the company experienced tremendous growth in its target markets. 

The transaction will be the largest acquisition in the history of the
computer industry, valued at $9.6 billion based on the January 23, 1998
closing price of Compaq common stock. Under the terms of the transaction,
shareholders of Digital will receive $30 in cash and approximately 0.945
shares of Compaq common stock for each share of Digital stock. Compaq will
issue approximately 150 million shares of Compaq common stock and $4.8
billion of cash. Under the terms of the agreement, Digital will become a
wholly owned subsidiary of Compaq.

"The combined companies will provide significant economic value growth for
our shareholders," said Earl Mason, chief financial officer of Compaq. "In
addition, the combination will be accretive within a year, meeting all of
Compaq's economic tests."

"This merger gives Digital tremendous reach and credibility in the
marketplace," said Digital Chairman Robert B. Palmer. "It gives us the
scale and resources to make continued investments in our key technologies
and services. Customers will benefit from the very complementary strengths
of both companies. For example, together we will offer customers the
greatest concentration of enterprise Windows NT products and lifecycle
services available in the market today.
Gordon C. Zaft
zaft@azstarnet.com