Oracle signs Compaq deal, Nasdaq tumbles and BMG eyes EMI

NEWS The paper reports the deal is the first agreement of its kind for a server manufacturer and streamlines the procurement process for customers who will get their server, software and systems from the one source rather than unrelated vendors. Larry Ellison, CEO of Oracle and Michael Papellan (sic), CEO of Compaq, claimed the agreement will also increase website performance by 50 per cent. The deal also presents a clear challenge to Microsoft and its Windows NT platform... While Compaq was celebrating its landmark agreement there was no such cheer for Hewlett Packard. The Guardian this morning reports on the fall on Nasdaq late yesterday that saw the index drop below 3,000 for the first time in a year. The fall was sparked by HP's announcement of lower than expected earnings that raised fears among investors of a slowing of the economy. Within 10 minutes of opening the Nasdaq index fell 3 per cent to 2936 and shares in HP fell 15 per cent. This latest downturn only added to the unrest caused by the ongoing presidential election uncertainty and it was the shambolic democratic process in the US which Carly Fiorina, CEO of Hewlett Packard, turned to when asking: "Is a CEO allowed to ask for a recount?"... Having already ruffled a few feathers in the music industry with its deal with Napster, German media group Bertelsmann is reportedly closing in on EMI. Any deal will tread on the toes of US entertainment group, Time Warner, whose proposed merger with EMI has been blocked by regulators, though ongoing talks may have seen the deal resurrected. The Telegraph reports that Bertelsmann, parent company of music distributor BMG, will have to offer around 150p per share to EMI shareholders - 50p more than Time Warner was offering...