Compaq to Announce Plan for AltaVista

Compaq Computer Corp. plans to announce today its evolving strategy for AltaVista, the Internet search guide inherited as part of last year’s $8.4-billion acquisition of Digital Equipment. Jim Finlaw, a spokesman for Houston-based Compaq, the world’s largest maker of personal computers, said that the announcement would center on how the company planned to transform AltaVista and “take it to the next level.” Analysts were divided on whether the news would involve another acquisition following Compaq’s recently announced $220-million deal to acquire online retailer Shopping.com, which Compaq plans to twin with AltaVista. Compaq shares rose 50 cents to close at $46.69 on the NYSE.