HP justifies Compaq buy

Hewlett-Packard and Compaq may release further details about their integration to reassure worried investors, according to the Wall Street Journal.

Compaq is also preparing advertisements that are meant to reassure investors who believe that Hewlett-Packard's planned acquisition of Compaq isn't a good idea. Both companies have been inundating their employees and customers with e-mails, phone calls and executive visits to counteract the negative reaction to the proposed transaction.

Critics have argued that the acquisition would make the combined company too reliant on the low-margin, slow-growing computer hardware business.

Shares of Hewlett-Packard have fallen 22 per cent since the announcement and Compaq has lost 14 per cent.