Compaq's imminent acquisition of Digital has been devalued from the record $9.6 billion to $8.4 billion, a drop of more than 13 per cent, following the slump in Compaq's share price. On 18 March, Compaq's shares were at $23, hit by inventory problems and the company's earlier profit warning.
In addition to issuing 150 million shares of new stock to finance the deal, Compaq will also be spending $4.8 billion in cash.
MDIS Group, the IT services firm, saw a net profit in the year to 31 December 1997 of £322,000 against a loss of £49.1 million in the previous year. Turnover was down three per cent at £113.4 million, from £117 million last year.
Risc chip and software vendor ARM Holdings has filed for an initial public offering of 11.7 million shares, preparing for its plans to float in London and New York this summer. The IPO will be in the form of American Depositary Shares (ADS) and each ADS will be worth three shares. The firm, spun out of the Acorn Group, will be valued at £175 million on flotation. According to the filings with the Securities and Exchange Commission, 5.85 million shares will be sold by holders, which include Apple and Acorn.
Nasdaq and Amex
Nasdaq, the predominantly technology-based stock market, and the US stock exchange, Amex, are to merge in a bid to face increasing competition from other exchanges around the world. The second and third largest stock exchanges in the US have approved a broad outline of the merger, where Amex would become a separate firm under the auspices of the National Association of Securities Dealers (NASD), but would operate as a sister market to Nasdaq.
Rockwell International, the US electronics and semiconductor group, has issued a profit warning for its second quarter earnings which it says are likely to decline as a result of weak sales of personal computer modems. Earnings for the quarter ending 31 March are expected to be down 25 per cent at about 53 cents per share, from 71 cents per share last year.
Dorling Kindersley, the reference book and CD-Rom publisher, announced a pre-tax profit of £4.1 million for the six months to 31 December 1997, down 40 per cent on a profit of £6.8 million in the same period last year. Group turnover rose 2.8 per cent to £91.3 million, but operating profit fell 31 per cent to £4.67 million. Dorling Kindersley's share price fell 9.5p to 219p on 18 March amid speculation that a rival may bid for the firm.
'Smaller firms may struggle to keep up with Microsoft's innovation with Dynamics' says CEO Stuart Fenton after acquiring assets from Profile Enterprise Solutions
Pete Peterson admits the firm hasn't always been the 'easiest company to do business with'
New chief exec Aaron Painter says 'longer-term strategy' could see firm tackle the Asian market
XMA bosses on becoming a 'performance VAR', pocketing £50m of Misco leftovers, and acquisition near-misses
Lee Hemani and Andy Wright reveal that XMA is aiming to boost net profits to three per cent of revenues as they run through the growth ambitions of the UK's ninth-largest reseller