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February 22, 1989

COMPAQ SHARE PRICE DOWN AFTER THE CMPUTERLAND DECISION

By CBR Staff Writer

Compaq Computer Corp’s decision to strike Businessland Inc off its list (CI No 1,121) was enough to strike $2 off the San Jose retailer’s share price, which landed at $12.875: Compaq suggests that the main reason for the termination is that Businessland has regularly demanded better terms than Compaq gives its other dealers, and the company, which sells only through dealers, has a cast iron policy of treating all of them alike; Businessland still thinks that the cut-off is more to do with its open championing of IBM’s Micro Channel; Compaq’s shares fell 50 cents to $70.375, but the move is widely seen by analysts as being at least as bad for Compaq, which has been getting 7% of its annual turnover from sales going via Businessland.

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