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Hewlett-Packard Prepares for Next Phase of Possible Compaq Merger.

Knight Ridder/Tribune Business News, March, 2002

By Crayton Harrison, The Dallas Morning News Knight Ridder/Tribune Business News

Mar. 28--Hewlett-Packard Co., watching investors gain confidence that its acquisition of Houston-based Compaq Computer Corp. will be approved, is now preparing the next phase of the merger -- cutting jobs and implementing the new company's structure.

H-P chief executive Carly Fiorina and Compaq CEO Michael Capellas started that process Wednesday with a letter to employees.

In the next week, the letter said, the company will start detailing the rosters of each business division more specifically. And H-P will lay down some of the "guiding principles" it will use to select employees for jobs in the combined company.

"We will try to do everything we can to...

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