Markets caught unawares yesterday start to look into the future...
Published: 5 September 2001 07:51 GMT
UK PC reseller Computacenter saw its share price soar seven per cent yesterday on news of HP's takeover of Compaq.
Investors are already gambling on HP's move being an indication of further consolidation in the sector.
HP and Compaq, two of the major players in the PC sector, said the need to cut costs was one reason for their union, and now all eyes are turning to the rest of the PC market to see how smaller players will act in order to compete. The activity in the markets certainly seems to suggest smaller companies such as Computacenter may prove tempting takeover targets for larger companies looking for consolidation.
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