HP and Compaq will still compete for federal work

HP and Compaq will still compete for federal work

After Hewlett-Packard Co.'s surprise announcement last week that it would acquire Compaq Computer Corp., the effect of the $87 billion merger on government systems and contracts with the two companies remained unclear.

The new company will be named Hewlett-Packard and led by current HP chief executive officer Carly Fiorina. Compaq spokesman Jim Finlaw said the companies won't disclose details about their public-sector businesses until after the acquisition is completed in mid-2002.

'Until that deal is closed, we still are fierce competitors in the marketplace,' Finlaw said.

Both companies list numerous products on the General Services Administration's Information Technology Schedule and other acquisition contracts, including the recent NASA Scientific and Engineering Workstation Procurement III.

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