Gateway, Compaq merger talk sounds spurious

"I know nothing about these rumours; it's probably caused by Compaq's statement they will sell direct," said John Shepheard, UK general manager at Gateway. "I can see the upside in the direct selling model for them in terms of controlling inventory and lowering prices but we don't comment on these rumours."

PCDN Comment: The genesis of these rumours is unclear but a combination of the world number one PC vendor and a leading direct seller would make perfect sense. However, Compaq's move into direct selling under its own banner, taken together with its stated intention to conquer fresh computing fields, means that any wedding talks are likely to have been past perfect.