Computer industry briefs

HP/Compaq Deal Gets European OK . . .

Hewlett-Packard Co.'s planned acquisition of Compaq Computer Corp. cleared a big hurdle as the European Commission gave its approval to the deal following an antitrust-related review. The commission said the combined company would "not be in a position to increase prices" because of the competition that exists in the IT industry.

. . . While HP Says More Cuts Are Likely

HP said in a filing with the Securities and Exchange Commission that it will likely make more cutbacks, whether or not the Compaq acquisition goes through. The merged company would eliminate about 15,000 jobs for a 10% workforce cut, HP said. But it added that reductions "would also be expected if the proposed merger is not completed."

Server Shipments Up Slightly During 2001

Server vendors managed only a 1.8% increase in worldwide unit shipments last year compared with 2000 levels, the lowest growth rate since 1996, according to preliminary numbers released by Gartner Inc.'s San Jose-based Dataquest unit. In the U.S., shipments dropped 9.5%, from 1.9 million systems during 2000 to 1.7 million last year.

Short Takes

Telecommunications carrier Global Crossing Holdings Ltd. filed for bankruptcy protection in New York and Bermuda, where it's based, and announced plans to sell ownership to new investors. . . Peer-to-peer software vendor Groove Networks Inc. in Beverly, Mass., named Chuck Teubner, formerly chief operating officer at USinternetworking Inc. in Annapolis, Md., to a similar position.

Copyright © 2002 IDG Communications, Inc.

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