Merger of Hewlett-Packard and Compaq Mergers‚ Acquisitions and Restructuring Introduction Throughout 1999 and 2000 in the midst of an increasingly competitive business environment‚ Hewlett-Packard’s board of directors and executive management evaluated numerous alternatives for business growth to protected the company’s viability. Although HP’s Imaging and Printing Group (IPG) dominated its market segment‚ the company did not rank among the top three among competitors in personal computers‚
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Robert F. Bruner‚ APPLIED MERGERS AND ACQUISITIONS http://www.authorstream.com/Presentation/aSGuest43708-380676-hp-compaq-merger-analysis-entertainment-ppt-powerpoint/ 12 23 Carly’s Big Party Plans 5.0% sales erosion 8.1% EBIT margin (resulting from $2.5BN cost savings) 7.0% net income margin 10.7% ROC Post-merger share price: $24.85 Synergy Calculations HWP Intrinsic Firm Value 3 6‚695‚889 CPQ Intrinsic Firm Value 10‚682‚654 Value
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Beating Dell: Why HP Acquired Compaq In 2001‚ Hewlett-Packard (now HP) shocked the business world when its former CEO‚ Carly Fiorina‚ announced that rival computer-maker Compaq had agreed to be acquired by HP. The announcement came at the end of a year in which slumping demand and strong competition from Dell had buffeted both companies. The merged company would have annual revenues of about $87.4 billion‚ putting it in the same league as IBM‚ and would be able to provide customers with a full range
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The Merger of HP and Compaq: Strategy. When a major merger is announced‚ like the one between HP and Compaq‚ investors try to understand where the stock value is going to come from and whether the companies have a plan to achieve that value. Deals are often brought to market with one big synergy number and a statement that the deal will be accretive to earnings. Many acquisitions and some large strategic investments are often justified with the argument that they will create synergy. In this paper
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HEWLETT – PACKARD – COMPAQ : THE MERGER DECISION Group members - Key Learning From The Article – 1. Insist on innovating operating strategies. 2. Do not go ahead if you do not have a plan to increase the shareholders’ value even in the long run. 3. Do not look always for growth only in high – growth industries. 4. Evolve in house capabilities. Note –Article main point was that nonsynergistics deals can be successful. HP – Compaq Case – As the PC‚
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. Over the time covered here‚ did Hewlett-Packards board of directors fulfill its duties to the company’s share owners? Explain how it met or did not meet basic duties. He did not fulfill his duties to the company. The board directors let a few influence their decisions. They did not take their decisions based solely on what was best for the company and their shareholders. It became a war between board members for control. 2. What different perspectives on the role of the board are revealed in
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HP at Cultural Crossroads Case study analysis: SHUBHADIP BISWAS Section-A Pgdm 10-12 IILMGSM HP at Cultural Crossroads • Founded in 1938 in California as an electronic instruments company by Bill Hewlett and David Packard. The founders……. The product …. The logo then HP’s culture had over the years translated into a consensus-style culture that was proving to be a sharp disadvantage in the fast-growing Internet business era. HP needed a new leader to cope with rapidly changing
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technical and fundamental anlaysis on HP Assignment type: Individual Submitted to: Dr. Timothy Submitted by: Mubashar Javaid Chaudhry Submitted on: 07/01/2013 Faculty of Business‚ Environment and Society Table of Contents 1. Introduction 3 2. Technical Analysis 3 3. Fundamental Analysis 16 4. Theoretical Evidence 21 5. Conclusion 24 6. References 25 1. Introduction Hewlett- Packard‚ also known as HP‚ co-founded by Bill Hewlett and Dave
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1.1 (ii) Porter’s Five Forces Analysis Threat of Entry: Threats of entry in this case is moderate. There is low brand loyalty of existing firms. Consumers usually compare the prices with different brands when they decide to purchase PCs. They think that every PC has the same price and has the same function no matter what brand it is‚ which means low product differentiation. There is medium capital requirements‚ no government regulations and low economies of scale in manufacturing. There is low
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CASE: GS-3A DATE: 05/01 (Rev’d. 3/8/04) Hewlett-Packard Company DeskJet Printer Supply Chain (A) INTRODUCTION Brent Cartier‚ Manager for Special Projects in the Materials Department of Hewlett-Packard (HP) Company’s Vancouver Division‚ clicked off another mile. It had been a long week and it looked like it would be a long weekend as well‚ based on the preparation that needed to be done for Monday’s meeting with Group Management on worldwide inventory levels for the DeskJet Printer product line
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