Compaq UK finds out about deal from TV

A senior Compaq executive has revealed exclusively to vnunet.com that Compaq and Hewlett Packard (HP) will continue to fight over customers for at least a year while the companies attempt to finalise their merger.

"Nothing will change for at least one year while we wait for the Federal Government and Brussels to check if the deal can be ratified. We will continue to compete with HP for this time, in case it is not ratified," said the executive.

"At the end of the day it may not get passed. If just one group says it is just too big it will not get the go ahead. Consider that Brussels has just bounced the GE/Honeywell merger," he added.

According to the Compaq source, who asked not to be named, no senior executives at Compaq UK had been told about HP's acquisition bombshell.

"The first we heard about this was when we saw it on breakfast television this morning. All the information we have is a Q and A and what's been published on the website. I do know now that there are senior company dignitaries over in the UK this morning," he said.

It is still unclear at Compaq UK as to how HP would integrate Compaq's product lines in the merged company. "It seems that we will keep the two businesses running separately until we see what technology will be brought together," the executive said.