FTC wants more info on Compaq-Digital deal

The Federal Trade Commission has asked for more details on Compaq Computer Corp.'s proposed $9.6 billion acquisition of Digital Equipment Corp., but the two companies still expect to close the deal before July, they said Monday.

The stock of both companies fell sharply in heavy trading on the New York Stock Exchange amid a wide sell-off of technology stocks.

Compaq (CPQ), the most actively traded issue on the NYSE, lost $2.56 to $25.125, while Digital (DEC), among the 10 most active, lost $2.69 to $49.75.

	Digital tightens its belt

The companies said they would comply with the request for information -- the second from the FTC -- that was issued under notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Further details on the FTC request were not released.

Compaq, the world's largest supplier of personal computers, said in January it would buy computer and network systems maker Digital in what would be the largest merger in the computer industry, valued initially at $9.6 billion.

The deal would create a high-tech superpower with sales of nearly $38 billion, based on combined fiscal 1997 results.

That rivals Hewlett-Packard Co.'s (HWP) No. 2 ranking in the industry, though it is dwarfed by IBM Corp.'s (IBM) revenues of more than $78.5 billion in 1997.