HP's offering less than Compaq was worth on Friday...

[link|http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AO5U51BVJSGV3bGV0|This] is an update to the previous Bloomberg story.

Compaq stockholders will get 0.6325 of a Hewlett-Packard share for each share held, valuing the company at $11.94 a share based on today's prices. That's 3.3 percent less than Compaq's close on Friday. Hewlett-Packard stockholders will own 64 percent of the combined company.

Hewlett-Packard shares fell $4.34 to $18.87 after touching $18.75, their lowest point since November 1996. The stock has lost 70 percent of its value in the past year. Compaq fell $1.27, or 10 percent, to $11.08 and has dropped 67 percent in the same period. IBM shares rose $1.54 to $101.49.

[...]

The companies each agreed to pay the other a $675 million fee for terminating the agreement, except if the acquisition falls apart because of government demands or other unusual circumstances, according to a filing with the Securities and Exchange Commission.

[...]


Emphasis added.

If there's any justice, Carly should be sweating now...

Cheers,
Scott.