The hewlett packard and compaq merger analysis

Related products Abstract The case gives an overview of the merger between two leading players in the global computer industry, Hewlett Packard Company HP and Compaq Computer Corporation.

HP denies Hewlett claims - Jan. Walter Hewlett said in a filing with the Securities and Exchange Commission that the merger will dilute HP stockholders' interest in the profitable imaging and printing business by one-third. Hewlett said HP's analysis creates a false impression by taking credit for "hypothetical" savings in but ignores costs required to buy Compaq and restructure the business.

The computer maker is also misleading shareholders by claiming that its merger with Compaq CPQ: Hewlett, son of one of the HP co-founders, is currently on a roadshow to meet with shareholders and has previously stated that HP's merger with Compaq will significantly diminish the value of shareholders' investment in HP on both a short-term and long-term basis.

Walter Hewlett controls more than 5 percent. Both are against the HP-Compaq merger. In early December, a key shareholder, the David and Lucille Packard Foundation, made a preliminary decision to vote against the merger.

The Packard Foundation holds more than 10 percent of HP's shares. Other heirs of the founding Hewlett and Packard families also are opposed to the merger.

Combined, the Packard Foundation and the heirs hold roughly 19 percent of HP's shares. Hewlett's filing Wednesday counters claims made by HP in its first letter to shareholders that the company sent last week. At that time, HP called Hewlett's presentation of the merger "flawed and misleading.Introduction Hewlett-Packard (HP) and Compaq Computers pulled off the largest technological merger in history.

In September , Carleton (Carly) Fiorina announced that HP will acquire Compaq’s stock transaction that will value at $25 billion (Hoopes, p. 4). The merger of Hewlett Packard and Compaq would create an $87 billion global technology leader.

However, this would not come without a cost. The founder's eldest son, Walter, strictly opposed the deal. The Hewlett-Packard and Compaq Merger Analysis The Proposed Merger with Compaq HP entered into an agreement with Compaq Computer Corporation in September In this definitive agreement, HP is going to purchase all of Compaq’s common shares outstanding, and pay a total price of shares of its common stock for each share .

Hewlett-Packard's proposed $24 billion acquisition of rival Compaq marked the largest merger in the history of the computer industry. The merger was Hewlett-Packard's response to sweeping changes impacting the technology industry.

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The severity of the stock market's reaction to the deal's. Hewlett Packard Compaq Merger Analysis: Impact on IBM, Intel, Cisco Systems, Microsoft, Sun and Walter Hewlett.

PORTLAND, Ore., Parish & Company, a global leader in analyzing and communicating complex financial transactions, today releases observations regarding the proposed merger between Hewlett Packard and Compaq based upon a detailed review. Mar 06,  · The Hewlett-Packard rationale for the deal is, simply, that by acquiring Compaq the combined company can cut costs at a time when the computer industry is struggling, and it .

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