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Compaq confirms talks
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June 24, 1999: 10:20 a.m. ET
Computer maker says it's discussing AltaVista sale with CMGI
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NEW YORK (CNNfn) - Compaq Computer Corp. confirmed Thursday that it was in talks with the Internet investment firm CMGI about a possible deal regarding Compaq's AltaVista holdings.
Speculation about such a deal surfaced earlier this week, but both Compaq, the world's largest manufacturer of personal computers, and CMGI refused to comment.
Compaq said the talks were in a preliminary stage and that there were no guarantees anything would come of the discussions.
Initially, it was believed Compaq (CPQ) was thinking about selling all of its Internet interests, including the popular AltaVista search engine.
However, in a statement Thursday, Compaq said that talks were about giving CMGI (CMGI) a controlling interest in AltaVista and also about merely establishing a strategic relationship with CMGI, indicating Compaq may not yet be ready to give up on its Internet division altogether.
AltaVista came bundled with Digital Equipment Corp., for which Compaq paid $8.4 billion in 1998. The large acquisition continues to hurt Compaq's bottom line.
Still, analysts expressed concern that Compaq would give up on AltaVista without fully exploring its potential in helping it create a presence and sell its products on the Web.
Shares of Compaq were up 1/16 to 23-1/2 in early trading Thursday.
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Compaq
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