Compaq, Adjusting to Share Total, Revises Its Offer for Shopping.com

Compaq Computer Corp. on Thursday trimmed the per-share price of its offer for online retailer Shopping.com after discovering there were more shares and convertible securities on the market than anticipated.

Compaq, the No. 1 personal computer maker and an expanding Internet presence, said in a statement it was lowering last week’s offer by 75 cents, to $18.25 a share.

Compaq said its total offer for Shopping.com remained $220 million, and analysts said the step was a technical adjustment rather than a significant change in the bid.

“The board of directors of Shopping.com unanimously endorsed and recommended the [original] offer and they continue to do so,” said Compaq spokesman Alan Hodel.

The revised price represents a premium of $5.07 per share over the $13.18 closing price of Newport Beach-based Shopping.com before Compaq made its offer Jan. 11.

On Thursday, Shopping.com shares dropped 91 cents to $17.72 in over-the-counter trading. Compaq’s stock closed at $47.69, down 56 cents a share, on the New York Stock Exchange.

Houston-based Compaq said it was mailing a supplemental letter to all shareholders of Shopping.com describing the change in the offer.

The deal is contingent on Compaq receiving 90% of outstanding shares in Shopping.com and customary regulatory approval.