SAN JOSE, California-- High-tech giant Hewlett-Packard Co. is buying rival Compaq Computer Corp. for about $25 billion in a blockbuster merger that should shake up the struggling computer industry.

HP and Compaq planners are contemplating two channel hierarchies: one for the high-end value channel, and another for the volume PC and printer channels, sources said. Under that scenario, the merged ...

Hewlett-Packard will acquire Compaq Computer in a stock swap worth about $25 billion, the companies announced late Monday. As earlier reported, the deal, one of the largest in technology history, ...