Investors take aim at HP, Compaq
Thursday, September 6, 2001
SAN JOSE, Calif. -- Investors pounded the stocks of Hewlett-Packard Co. and Compaq Computer Corp. to 52-week lows Wednesday, indicating Wall Street has yet to be convinced HP's acquisition of Compaq is a good idea.
HP shares fell 4 percent, or 79 cents, to $18.21 on the New York Stock Exchange. The price has fallen 22 percent since HP's stock swap with Compaq was announced late Monday, dropping the value of the deal from $25 billion to $19.5 billion.
Compaq's stock, down 16 percent since the deal was announced, fell 67 cents Wednesday to $10.41.
The acquisition still must be approved by regulators, and shareholders of both companies.