US technology giants Hewlett-Packard and Compaq Computers have announced a merger deal to create an $87 billion dollar giant. In the deal, Hewlett-Packard is to pay $25 billion in stock, with Compaq holders receiving 0.6325 Hewlett shares for every Compaq share. Hewlett-Packard will control 64% of the newly merged company. Carly Fiorina, currently CEO of Hewlett-Packard, will head the new group, with Compaq's Michael Capellas becoming chairman. The two companies see the deal closing in the first half of 2002, with total synergies seen at $2.5 billion by mid fiscal 2004.