CHICAGO: Computer and printer manufacturer Hewlett-Packard Co., which earlier
this week made a $25 billion bid for Compaq Computer Corp., said on Thursday it
would pay up to $882 million in stock and cash to buy industrial printing
systems firm Indigo NV.
HP already had a minority stake in Indigo, which makes high-speed color print
technology, an area HP expects will take off in the commercial printing market.
The deal would add to HP's earnings per share in the first full year of
operation, HP, said in a statement.
HP said it had owned approximately 13.4 per cent of Netherlands-based Indigo
and would pay $629 million in stock for the remainder, with an additional cash
payment of up to $253 million contingent upon Indigo hitting revenue targets.
Hewlett-Packard shares closed on Thursday at $17.70, off 51 cents or 2.8 per
cent, reducing the value of its all-stock offer for Compaq to $19 billion from
the $25 billion value it announced based on last Friday's closing price.
(C) Reuters Limited 2001.