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Hewlett-Packard Co. and Compaq Computer Corp. claim the company resulting from their proposed merger will be the market leader in a number of product segments. But market leadership and success are not necessarily the same, say some observers.
In announcing their $25 billion proposed merger on Sept. 4, Hewlett-Packard of Palo Alto and Houston-based Compaq said the combined companies would hold a leading position in personal computers and servers and a greatly strengthened position in software and information technology consulting services. They also could give Palm Inc. a run for the money in the handheld arena.
But the two companies face a number of challenges in reaching and holding those positions. For one thing, too much overlap among their respective product segments presents a serious problem for the …