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RE: What ever happened to... DEC?
Yes indeed... of course, the Digital of PDP and VAXen glory really died
when the BOD booted Ken Olsen out. I hear when Ken left, there was a
big going away party in one of the Cafeterias up north. The crowd that
showed up to greet him farewell was so huge that they had to move it
outside because there was concern about the floor caving in.
Somehow, I don't think Palmer will get that kind of send off. He made
lots of enemies among the common DECie. I know he had to do it (the
layoffs, selloffs, etc.), but I must admit I'm glad to see he's
leaving. Now we can leave the Palmer era behind and move onward.
What will the future hold? I don't know, and that's a little weird,
because I usually have a feeling for where things are going. But my
crystal ball is foggy. It's all up to Eckhard now.
After leaving Delta, it was my dream to have a job at DEC. Who would
have though DEC would get bought by a company that didn't even exist
until 1981. What if somebody told you then that Compaq, the company
that makes that suitcase-sized "portable" PC clone, would someday buy
Regards for now...
PS, anybody know how to spell Presario?
From: Aron Insinga [SMTP:firstname.lastname@example.org]
Sent: Wednesday, June 10, 1998 12:52 PM
Subject: What ever happened to... DEC?
Palmer to leave Digital
CEO departing computer maker in
merger-related management shakeup
June 10, 1998: 8:27 a.m. ET
NEW YORK (CNNfn) - Robert Palmer, the chief
operating officer of Digital Equipment Corp.,
will leave the company as a result of its
pending merger with Compaq Computer Corp.,
CNNfn has learned.
The $9.6 billion merger between the two
computer companies, first announced in January,
is all but finalized. A Digital shareholders
meeting to vote on the deal is scheduled for
As a consequence of the merger, a new top
management team will be installed, according
to sources. It will include Compaq's Eckhard
Pfeiffer as chairman and CEO, along with
Digital's Enrico Pesatori and Compaq's John
Rose as upper-rung managers. Compaq's Earl
Mason likely will remain as chief financial
officer of the combined company.
Compaq said its new management structure will
be officially announced Friday. Under terms of
the merger agreement, Digital shareholders will
get $30 cash and 0.945 share of Compaq stock for
each Digital share. The merger will result in
restructuring charges for the combined entity of
$1.5 billion to $2 billion, according to proxy
materials filed with the Securities and Exchange
Commission. About 15,000 jobs are expected to be
cut as a result of the merger.
According to the proxy statement, Palmer will
be entitled to a cash severance payment of
$6.45 million for leaving the company.
Palmer, 57, became president, chief executive
officer and a member of the board of directors
of Digital in 1992. He was elected chairman in
Prior to joining Digital in 1985, Palmer
served as executive vice president of
semiconductor operations at United
Digital stock (DEC) climbed 15/16 to 57-3/4
Tuesday. Compaq shares (CPQ) rose 1 to