Hpq Merger

Hewlett-Packard (HP) and Compaq Introduction: The acquisition of Compaq by Hewlett-Packard was characterized by a conversion of features and events that made the merger exceptionally recreateing. HP bought Compaq in folk 2002, by a $18 billion stock-swap, resulting in the largest take-over in the computing industry. HPs acquisition created an IT giant with annual sales of about $87 billion and current assets of over $55 billion, which changed the competitive landscape for the whole IT industry. However, the matter of great interest lies in the fact that this take-over was extremely controversial. The heirs of the founders of HP pledged their intact stock of 18 percent against the merger saying that it was non the hp way. The hp way, they claimed, embraces a fuck of technology, a bond with the community, and deep respect for employees. The merger, it was believed, would cause 15,000 lay-offs, which the heirs believed, was against HPs corporate culture. Other significant issues were raised and the merger had to stand out through competition authorities in the US and the EU. Furthermore, HPs CEO Carly Fiorina was accused of bribing an investor, Deutsche Asset Management, a unit of Deutsche Bank, into balloting for the deal.

However, despite all there hurdles, the deal was finally unkindly on 4th September 2002, for $ 18 billion. connection description: The following section briefly describes the two companies, HP and Compaq. Hewlett-Packard (HP): The Hewlett-Packard Company is the worlds largest information technology company, in terms of revenue. It is headquartered in Palo Alto, California and is renowned globally for its good quality computing, printing, digital imaging, software and services. HP is recognized as one of the typic founders of Silicon Valley. In Silicon Valley, it is believed, Hewlett-Packard is more than just a business. It is a cultural icon, promoting the laid-back and innovative character of the technological world.... If you want to get a full essay, decree it on our website: Orderessay

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