HP-Compaq deal under threat as markets fall

NEWS HP's planned merger with Compaq looks set to come under severe pressure in the wake of the terrorist attack on the World Trade Center as falling shares make the agreement look ever-more expensive. Compaq stock is trading this week at 17 per cent less than the value put on it when the $20bn mega-merger was announced more than two weeks ago. In spite of the widening gap between the bid price and current share values though, both firms insist that the deal will go ahead. However, reports in the Financial Times claim investors are less than happy.