COMPAQ SHAREHOLDERS OKAY SALE: By a 9-1 ratio, Compaq Computer Corp. investors gave their approval for Hewlett-Packard Co.'s acquisition of their company, a day after HP claimed victory in its contentious shareholder vote. "It's the only combination in the industry that makes sense," chief executive Michael Capellas said at an investor meeting in Houston. Compaq shares fell 32 cents to $10.82. Shares of Hewlett-Packard fell 60 cents to $18.20.
SYKES DISCLOSES PAYMENTS: John Sykes, chief executive and chairman of Sykes Enterprises Inc. and its largest shareholder, received more than $1-million in side deals with the Tampa company in 2001. According to an annual report filed with the Securities and Exchange Commission, Sykes Enterprises paid about $800,000 for use of its founder's private airplane and roughly $500,000 to a company in which he has an 80 percent equity interest for help in deciding where to locate its U.S. call centers. Chief financial officer Mike Kipphut said the real estate consulting deal was canceled in July to reduce the company's side arrangements with its CEO. Sykes Enterprises' board also forgave a $400,000 note Sykes owed after concluding it was a corporate expense. Sykes' employment contract includes an annual base salary of $550,000 plus a performance-based bonus.
COURT OKAYS KMART AGREEMENTS: Kmart Corp. received bankruptcy court approval to continue its licensing agreements with its five major brands, including suppliers Martha Stewart Living Omnimedia and Disney Enterprises. James Adamson, Kmart chairman and chief executive, said getting the judge's approval was a key victory for the discount retailer in its restructuring efforts as it looks for ways to stand out from its competitors. Kmart filed for Chapter 11 bankruptcy protection Jan. 22.