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July 2, 1997updated 05 Sep 2016 1:03pm

NEC PUTS MORE CASH IN PACKARD-BELL NEC TO FUND DIRECT SALES

By CBR Staff Writer

The runaway success of Compaq Computer Corp and Dell Computer Corp has overshadowed lesser efforts in the still cutthroat personal computer business, and NEC Corp’s additional $285m investment in its Packard-Bell NEC Inc arm is seen by many as a sign that things aren’t going so well at the company. NEC says the extra money will be used to fund the new effort to build up a direct sales effort, announced recently (CI No 3,185); NEC spent $170m on its original 19.9% stake back in 1995 (CI No 2,700), just slightly more than Compagnie des Machines Bull SA’s 19.85% stake. Bull’s stake includes the merger of Zenith Data Systems into Packard Bell, and just to make it more complex still, NEC owns 17% of Bull. For the extra money, NEC receives extra non- voting preferred shares but keeps its ordinary equity stake the same.

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