HP and Compaq: Investors fail to get excited

NEWS HP and Compaq have experienced an unsettled first night of their honeymoon with investors showing little faith in their arranged marriage. Shares in HP fell 19 per cent, or $4.34, to close at $18.87. Compaq also slid 10.3 per cent, or $1.27, to $11.08. The decline means Compaq shareholders have already seen the premium they gained from the share swap deal wiped out. Competitors of the two companies enjoyed significant gains on the back of the deal. Sun, a rival in the server market, rose three per cent, while Dell enjoyed an eight per cent boost for its share price.