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1) Hewlett-Packard to Buy Rival Compaq -NYT: Computer giant Hewlett-Packard Co. (NYSE:HWP - news) will announce on Tuesday it is buying rival Compaq Computer Corp. (NYSE:CPQ - news) for $25 billion in stock, The New York Times reported on Monday evening, citing executives close to the negotiations.

While an agreement had been reached in the acquisition, specific terms were not disclosed, according to the newspaper. However, a premium is being offered for Compaq's stock, The New York Times reported.


2) Compaq makes move toward utility-based hardware services: Compaq on Tuesday became the latest major computer vendor to shift its focus from standalone product sales to complete technology solution offerings. The Houston-based company announced a change in its sales strategy, pushing software, hardware, and services packages to large corporate customers in a move to emphasize that it does more than make hardware. Calling the initiative "Computing on Demand," Compaq will tie installation and technical support services to its hardware sales of PCs, servers, storage, and handheld devices. This means Compaq customers will no longer have to build and scale their corporate IT networks with multiple product purchases.



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