Hp Compaq Merger
THE HEWLETT-PACKARD AND COMPAQ MERGER
LIST OF TOPICS S. No. | TOPIC | 1 | Executive Summary | 2 | The IT Industry Profile | 3 | Introduction to the Company Profile – HP and Compaq | 4 | Pre-Merger stats for HP and Compaq | 5 | Relative Performance of HP and Compaq | 6 | HP-Compaq Merger | 7 | Objectives of the Merger | 8 | Expectations from the Merger of HP and Compaq | 9 | Key Points that encouraged the Merger Decision | 10 | Advantages of Merger and Opposition to the Merger | 11 | Considerations for Merger | 12 | Summary of Deal | 13 | Type of Merger | 14 | Deal Valuation | 15 | New Leadership | 16 | Strategic Analysis and Strategic Sharing | 17 | The Integration Planning Process | 18 | Due Diligence : Assessing the Cultural Differences | 19 | The Values and Corporate Objectives of the New HP | 20 | Capital Structure – Before and After merger | 21 | Analysis of the Merger | 22 | HP Today | 23 | Conclusion |
EXECUTIVE SUMMARY
The world’s largest corporate Information Technology merger began in September 2001 when HP announced that they would acquire Compaq in an all stock purchase valued at $25 billion. Over an 8 month period ending in May 2002, the merger passed shareholder and regulatory approval with the end result being one company. The new HP has annual sales of approximately $90 billion which is comparable to IBM, and an operating income of almost $4 billion. The merger was led by Carly Fiorina, the chairwoman and CEO of HP. The president of the new HP was Michael Capellas who was the former chairman and CEO of the old HP and who has recently resigned and is now the CEO of World Com.
Overall, many analysts were critical of the merger from the beginning since both Compaq and HP were struggling companies before the merger. The common question that has been raised by analysts is: Do two struggling companies make a better merged company? Some analysts have indicated that the merger is a
LIST OF TOPICS S. No. | TOPIC | 1 | Executive Summary | 2 | The IT Industry Profile | 3 | Introduction to the Company Profile – HP and Compaq | 4 | Pre-Merger stats for HP and Compaq | 5 | Relative Performance of HP and Compaq | 6 | HP-Compaq Merger | 7 | Objectives of the Merger | 8 | Expectations from the Merger of HP and Compaq | 9 | Key Points that encouraged the Merger Decision | 10 | Advantages of Merger and Opposition to the Merger | 11 | Considerations for Merger | 12 | Summary of Deal | 13 | Type of Merger | 14 | Deal Valuation | 15 | New Leadership | 16 | Strategic Analysis and Strategic Sharing | 17 | The Integration Planning Process | 18 | Due Diligence : Assessing the Cultural Differences | 19 | The Values and Corporate Objectives of the New HP | 20 | Capital Structure – Before and After merger | 21 | Analysis of the Merger | 22 | HP Today | 23 | Conclusion |
EXECUTIVE SUMMARY
The world’s largest corporate Information Technology merger began in September 2001 when HP announced that they would acquire Compaq in an all stock purchase valued at $25 billion. Over an 8 month period ending in May 2002, the merger passed shareholder and regulatory approval with the end result being one company. The new HP has annual sales of approximately $90 billion which is comparable to IBM, and an operating income of almost $4 billion. The merger was led by Carly Fiorina, the chairwoman and CEO of HP. The president of the new HP was Michael Capellas who was the former chairman and CEO of the old HP and who has recently resigned and is now the CEO of World Com.
Overall, many analysts were critical of the merger from the beginning since both Compaq and HP were struggling companies before the merger. The common question that has been raised by analysts is: Do two struggling companies make a better merged company? Some analysts have indicated that the merger is a