Hp M&A

M&A: HP and Compaq Summary The gentlemans gentlemans largest corporate IT uniting began in September 2001 when the chairwoman and chief executive officer of HP, Carly Fiorina, announced that HP would larn Compaq by purchasing its declination valued at $19 one million million million. In May 2002 over an 8 month period the M&A deal passed shareholder and regulatory approval and finally became cosmos one connection, HPQ. The modernistic HP has annual sales of close to $90 zillion which is comparable to IBM, and an operating income of almost $4 billion. The nuclear fusion was led by Carly Fiorina from HP side and Michael Capellas from Compaq side. Carly Fiorina became the raw CEO of the new HP, and Michael Capellas became the president of the new HP. Overall, many analysts were censorious of the merger from the beginning since both Compaq and HP were struggling companies onward the merger. The common question that has been raised by analysts is: Do 2 s truggling companies make a better merged bon ton? Some analysts have describe the merger as deuce garage trucks smashing into another. They strongly believe that the merger is a gamble, and it is difficult to see any focused logic prat the merge considering that most M&A deals in IT sectors were not productive.

It is generally known that the acquisition of this scale in IT sector rarely work, and there is less benefit than deals risk. agent to the merger, both HP and Compaq has been unable to grow despite Compaq previously acquired Digital and HP was trying to grow internally. Both companies were hush in the process of adjus ting to outgoing acquisitions and both were! adjusting to new leadership. The merger deal also had a problem of many overlaps in products, technologies, distribution channels, services, facilities and jobs. Employee morale is a threat to a booming merger. By the plan of annual cost savings of 2.5 billion dollars, certainly 15,000 employees were facing layoffs. In addition, both companies in the previous(prenominal) have struggled to resolve conflicts between...If you want to get a well(p) essay, rewrite it on our website: BestEssayCheap.com

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