Compaq Gains Ground on IBM, but Merrill Lynch Settlement Hits Snag

Strategic Insights -

Compaq has made another significant move to rival IBM, convincing Radio Shack to switch its personal computers to Compaq PCs in its stores. This follows Compaq's acquisition of Digital Equipment Corp., a deal that analysts believe brings the company closer to its goal of becoming the world's dominant computer supplier. Meanwhile, a settlement between Merrill Lynch and female brokers who sued the firm for sexual discrimination encountered an unexpected obstacle, and house sales rose 4.1% in 1997, driven by a vibrant economy and low mortgage rates.

Key Takeaways:

  • Compaq has secured a major victory over IBM by convincing Radio Shack to switch to Compaq PCs, further solidifying its position as a major player in the computer industry.
  • Compaq's acquisition of Digital Equipment Corp. is seen as a significant step towards its goal of becoming the world's dominant supplier of computer services.
  • A settlement between Merrill Lynch and female brokers who sued the firm for sexual discrimination was delayed due to unforeseen circumstances.
  • House sales rose 4.1% in 1997, fueled by a strong economy, high consumer confidence, and low mortgage rates.
  • Compaq has joined Wave Technologies International Inc. in acquiring QA Training's United States operations and assets.
  • GTE Corp. has won approval for an extended calling plan from the Missouri Public Service Commission, which will take effect on March 16.
  • The new calling plan will be available to home telephone customers for $23 a month and to businesses for $33 a month.

Statistics:

  • Compaq has secured a major contract with Radio Shack, one of the nation's largest consumer electronics chains.
  • House sales rose 4.1% in 1997, driven by a vibrant economy and low mortgage rates.
  • The settlement between Merrill Lynch and female brokers dragged on for nearly two years, since the lawsuit was filed in February 1997.
  • Compaq's acquisition of Digital Equipment Corp. took place just two days prior to the announcement with Radio Shack.
  • GTE's new calling plan will be available in 63 exchanges, effective March 16.

Sources:

  • "Compaq Gains Ground on IBM" by [Undisclosed Source]
  • "Merrill Lynch Settlement Hits Snag" by [Undisclosed Source]
  • Chicago Title and Trust Co.
  • [Database: NewsBank]
  • GTE Corp.