Hp and Compaq

A conjugation as big and bold as Hewlett-Packards $19 billion acquisition of Compaq Computer in 2002 had never taken place before in the technology industry. HPs CEO, Carly Fiorina, called it an historic event. To many critics, however, the merger seemed doomed to fail. Whatever their stamp of the strategic rationale, many observers thought that HP would not be able to successfully integrate its former rival. An embattled challenger described it as a slow motion collision of both garbage trucks. Even HPs head of serviceman resources compared mergers in general to icebergs where the real work takes place below the surface. The merger would produce one very large iceberg; maybe big enough to sink competitors, or break up under the stress of internal and external forces. Nevertheless, Fiorina believed it was the right relocation for HP, and a key element in her strategic accusing to make HP, in her words, the leading technology lodge in the world. lovely shareholder approval for the merger proved to be a tough fight for Fiorina and her senior executive team. Compaqs shareholders were unstrained enough to swap their stock for HP shares, but HPs shareholders proved harder to convince.

Announced on Labor Day 2001, it was make from the outset that the deal would lead to the elimination of at least 15,000 jobs. That was one of the reasons that Walter Hewlett, HP board member and son of the companys co-founder William R. Hewlett, led a proxy battle to debate the merger. The fight became costly and bitter. In March 2002, the vote came waste to a thin 3 percent majority for the merger, with recrimination on both sides. Soon after, regulators in the United States and European Community as well as gave their approvals to the merger and HP cleared its choke external obstacle. In early May 2002, the acquisition integration could at last officially start. Behind the scenes, before winning shareholder and regulator approval, but careful to stay within the limits of the law, HP and Compaq... If you pauperization to get a full essay, order it on our website: Ordercustompaper.com

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