Essay on Compaq HP Merger

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Compaq HP Merger

"There is no more dramatic or controversial activity in corporate
finance than the acquisition of one firm by another or the merger of
two firms. It is the stuff of which reporter's dreams are made, and it
is also an embarrassing source of scandal."(Ross,S.1996)

A merger refers to the absorption of one firm by another. The
acquiring firm retains its name and its identity, and it acquires all
of the assets and liabilities of the acquired firm. After a merger,
the acquired firm ceases to exist as a separate business entity. In
resent years, more and more merger and acquisition happened for those
big companies as a result of intense competition in the business
world. To maintain
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Compaq provides industry-leading enterprise
computing solutions, networking and communication products,
fault-tolerant business-critical solutions, portable products and
consumer PCs, commercial desktop. Customers of the company include,
home users, business interests, government and educational users. The
products of the company include industry-standard servers,
business-critical servers, storage products, portables, monitors,
desktops, workstations, handhelds, Internet access devices, life-cycle
management products, desktop PCs, printers and related products. The
company operates mainly in Japan, North America, Asia-Pacific, Latin
America, China, Europe, the Middle East and Africa. In fiscal year
2001, Compaq reported revenues of $33.6 billion. Enterprise computing
accounted for 34% of 2000 revenues; consumer pc 18%; commercial
personal computing 31%; Compaq global services, 16% & other, 1%
(http://thenew.hp.com/).

Compaq Computer Corporation was founded in February 1982 by Rod
Canion, Jim Harris and Bill Murto, three senior managers who left
Texas Instruments and invested $1,000 each to form their own company.
The first product was a portable…

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