Compaq buys DEC

Compaq Computer Corp. (CPQ) is buying Digital Equipment Corp. (DEC) for $9.6 billion, the company confirmed today. The deal would be the biggest ever in the computer industry.

In early trading in London, Digital's share price jumped jumped around $8-1/2 to trade at $54 in London.

Dealers said shares in Compaq had not traded but were indicated down $3/4 from their New York close at around $30.

Compaq will hold a press conference in New York at 11:30 a.m. ET to discuss the deal.

Details to follow.

Material from Reuters was used in this report.