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Courtesy of Forbes

HP's Compaq deal continues to do damage … to HP's rivals

Some failure. Five years after Hewlett-Packard's controversial $24 billion acquisition of PC rival Compaq and almost 18 months after the ouster of the chief executive who engineered it, the deal continues to do damage … to HP's rivals.

The latest casualty: Gateway (nyse: GTW - news - people ), which Acer agreed to buy Monday for $710 million — and, along with it, the right of first refusal to buy PC maker Packard-Bell — for just a fraction of what it was worth in the days when the PC maker was tearing through the computer market.

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