Michael dell, ceo of rival dell computer, famously called it the dumbest deal of the decade, and walter hewlett, the son of one of the companys founders, mounted an. Many solution providers were against the hp compaq merger. Hewlett packard ceo carly fiorina is fighting the families of the founding members of hp regarding a proposed merger between hp and compaq. The issues surrounding the merger hp prepares for merger with compaq hewlettpackards bid to buy compaq faces a critical test this week when the david and lucile packard foundation board meets. The issues surrounding the merger hp prepares for merger. A walkthrough of a merger valuation 2 hps major concerns. The hewlettpackard and compaq merger semantic scholar. Nov 19, 2001 the sacramento business journal features local business news about sacramento. As the corporations pursued diversification in their product portfolio, by the late 1990s, the competition amongst ibm, hp, compaq, and dell grew fierce. Dec 22, 2011 the hewlettpackard and compaq merger analysis the proposed merger with compaq hp entered into an agreement with compaq computer corporation in september 2001. Hp compaq 8200 elite small form factor pc choose a different product series warranty status. Et ceo expects tough times ahead for merger, still thinks hp compaq merger can succeed. Filing shows reasons for hpcompaq merger sacramento. Hewlettpackards acquisition of compaq may be complicated and poorly timed, but some experts say undoing the deal could be disastrous for both companies.
One of the largest cultural clashes identified within the hpcompaq merger was speed. Hp compaq 8200 elite small form factor pc manuals hp. Post merger integration pmi leadership and group management named at time of announcement on september 4, 2001 additional new hp senior leaders announced october 12, 2001 dedicated, fulltime pmi leads from both hp and compaq directing planning for businesses, functions and horizontal processes since september. Hp faq on the merger compaq stock splits last compaq annual report compaq sec filings goes back to 1983 ipo and includes annual reports for sec filings, you can also use the secs edgar site. Hwp today announced that it completed its merger transaction with compaq computer corporation nyse. Fiorina sees the merger as the only way to stay competitive in the technology market and compete with ibm. Full text of merging information technology and cultures at compaqdigital. Need to attack the enterprise market more aggressively primary engine for value creation. Hp news hewlettpackard and compaq agree to merge, creating.
The case describes in detail the rationale for the hp compaq merger, the problems faced in integrating the merged entities and whether the merger made business and economic sense. The san francisco business times features local business news about san francisco. February 01, 2006 this is the fourth of a fourcase series. Computer giant hewlett packard has announced its buying rival firm compaq computers in a merger which will create the worlds largest producer of personal computers. Strategy and valuation article pdf available january 2008 with 5,216 reads how we measure reads. In 2001, when hewlettpackards thenceo carly fiorina announced that the technology giant proposed to merge with compaq computer corp. On march 6, 2002, the federal trade commission of the united states of america granted the permission of merger between the famous hewlett packard hp, one of the leading imaging and computing solutions and service providers across the world, and compaq computer. Hewlett prepares for proxy fight over hp compaq merger. Hp compaq merger ppt free download as powerpoint presentation. The case gives an overview of the merger between two leading players in the global computer industry, hewlett packard company hp and compaq computer corporation. May 01, 2006 hp and compaq merger the failure of the merger between two leading competitors in the global computer industry, hewlettpackard company hp and compaq computer corporation compaq failed as the synergies identified prior to the merger did not materialize. Compaq was a company founded in 1982 that developed, sold, and supported computers and. Case analysishp compaq merger mergers and acquisitions.
Leading the charge for the merger of compaq to hewlett packard was the then chief executive officer, carly fiorina. Unspecified check warranty status manufacturer warranty has expired see details covered under manufacturer warranty covered under extended warranty, months remaining month remaining days remaining day remaining see details. On the 3rd september 2001, hewlettpackard company nyse. Strategy valuation and deal design case analysis submitted by. Each of hp and compaq have a communitywide turnover in excess of eur 250 million. The merger was hewlettpackards response to sweeping changes impacting the technology industry. Hewlett prepares for proxy fight over hpcompaq merger. The hpcompaq merger oneyear checkup special reports. At first glance, hewlett packard hp doesnt seem to be a family firm, but when push comes to shove as it did during the controversial hp compaq merger family matters. Yes, we do believe the proposed merger is likely to address the challenges hp faces. In march 2002, the vote came down to a thin 3 percent majority for the merger, with recrimination on both sides. Selling the deal hp compaq road show fails to convice many analysts that merger is the solution benjamin pimentel, chronicle staff writer published 4.
Six years later, after fiorinas acrimonious 2005 departure which many attributed largely to the merger and the promotion of former ncr head mark hurd to lead hp, the consensus is that the merger was indeed a good idea. The reason, say experts at wharton and elsewhere, is that the. Investors and security holders of hp and compaq are urged to read the definitive joint proxy statementprospectus filed with the sec on february 5, 2002 and any other relevant materials filed by hp. Case analysishp compaq merger free download as pdf file. The trading of compaq common stock will be suspended before the opening of the market on may 6, 2002, and hp will begin trading under the new nyse symbol hpq. At the oneyear mark of the giant hp compaq merger, the combined company appears to be doing better than expected, forrester analyst rob enderle told. May 17, 2002 failed hp compaq merger would be painful. In a years time, the partnership called hewlettpackard was made and by the.
Case analysishp compaq merger qn855zo832n1 idocpub. This filing relates to a planned merger the merger between hewlettpackard company hp and compaq. Included are completed valuations of both hp and compaq and detailed. Users uncertain of impact of hpcompaq merger computerworld. The jury is still out on whether the tech industrys most contentious merger has lived up to the expectations of the optimists behind the deal. Evaluation range for the merge resume the merger of hewlettpackard and compaq.
The new hp will offer the industrys most complete set of it products and services for both businesses and consumers, with a commitment to serving customers. The undertakings concerned have a combined aggregate worldwide turnover of more than eur 5 bio eur 51,4 bio for hp and eur 46,1 bio for compaq in 20002. Two years after hewlett packards merger with compaq, people are still asking some hard questions about the companys prospects. Carly fiorina left hewlettpackards headquarters in silicon valley late on november 6, 2001, to head home after an especially hectic day at the office, she pondered her companys merger. Analysis of merger between hp and compaq 2687 words bartleby. Hp and compaq merger mystery business the economist. But 10 years later, partners reflect on the historic deal and how it changed hp.
Columnist john dickinson says the deal is basically a survival merger, designed to keep two companies afloat in. While many analyses of failed mergers and other collaborations. Announced the week before 911, the hp compaq merger was met with almost universal skepticism and cynicism. The change in attitude is due as much to hurds leadership as to the fact that the logic driving the merger was sound. Merge pdf files combine pdfs in the order you want with the easiest pdf merger available. A shotgun wedding when wall street opened on the day after the merger was announced, hp shareholders began to dump their stock. Official hp inc public page on employee stock, including compaq espp. Soda pdf merge tool allows you to combine two or more documents into a single pdf file for free. A shotgun wedding when wall street opened on the day after the merger was announced, hp shareholders began to. Dec 11, 2001 hp to take merger to shareholders december 11, 2001. Oct 29, 2016 culture due diligence during hpcompaq merger values enabled the realization of the merger making it possible to build a new organization value democratization is a process of forming a new organizational society by discovering common values core values were not imposed on the employees by top management the process of. Hpq hp and compaq merger free download as powerpoint presentation. Index termsbook to market value, market capitalization, pre and post merger. Perhaps it was my digital background, but i thought that compaqs energy was badly focused and misdirected.
The following is a brief description of the two companies. Both companies have significant brand recognition and brand loyalty in it industry with strong customer base and market share. Select multiple pdf files and merge them in seconds. Hewlettpackard hp it all began in the year 1938 when two electrical engineering graduates from stanford university called william hewlett and david packard started their business in a garage in palo alto. An hp spokeswoman said compaq shareholders would get letters explaining the stock swap in the next week. Corporate acquisitions are considered as a critical component. Pdf merge combinejoin pdf files online for free soda pdf. The merger decision group no 3 ninad nigam vivek sharma 16 31 abstract of case the spirit of case is primarily based on the issues related with potential acquisition of compaq by hp. The merger made compaq, at the time, the worlds second largest computer maker in the world in terms of revenue behind ibm. Hp and compaq merger the failure of the merger between two leading competitors in the global computer industry, hewlettpackard company hp and compaq computer corporation compaq failed as the synergies identified prior to the merger did not materialize. While critics have had their moments of joy ever since the hp compaq merger deal was announced, this has not stopped the seemingly dare devil carly fiorina, the ceo of hp, to move ahead with her plans. The hewlettpackard and compaq merger analysis the proposed merger with compaq hp entered into an agreement with compaq computer corporation in september 2001. North america consumer post sales support support related hp compaq merger faqs.
But of all the megadeals in the last 10 years that have engendered opprobrium, few have rivaled in negative views the combination of hewlettpackard and compaq computer. In this paper we will analyze the merger between hewlett packard and compaq. Hpq hp and compaq merger hewlett packard mergers and. Soon after, regulators in the united states and european. The aim of this paper is to analyze if compaq and hp shareholders have benefited from such a merge. Public opinion about the merger has fluctuated over the years, but people dont talk about it anymore because its initial assumptions have been. In this definitive agreement, hp is going to purchase all of compaqs common shares outstanding, and pay a total price of 0. As of right now, your hp and compaq contacts have not changed. We also provide tools to help businesses grow, network and hire. It makes them a larger, more confused competitormore dependent on the pc. Many solution providers were against the hpcompaq merger. Abstracton the 3rd september 2001, hewlettpackard company nyse. A ceo will always consider such a merger to be an occasion to take a competitive advantage over its rivals like ibm as in this case and also be of some interest to the shareholders as well.
The a case presents information about the strategic and financial motivations of the merger. It also describes the product profile of the merged entity and how the new hp compares with its. Theres no doubt in my mind that the pccentric culture of compaq would have eventually led it to bankruptcy. May 07, 2012 ten years later on i think that lots more good resulted from the merger than bad. The titans of the computer hardware industry specialized in unique products and services. The severity of the stock markets reaction to the deals. After the longawaited meeting of hewlettpackard shareholders, the company declares that it appears to have won the proxy fight. A walkthrough of a merger valuation 2 hp s major concerns. Scribd is the worlds largest social reading and publishing site. A key study pdf noted hewlettpackards systematic approach. In this definitive agreement, hp is going to purchase all of compaq s common shares outstanding, and pay a total price of 0.
The a case uvaf1450 presents information about the strategic and financial motivations of the merger. Hp compaq merger the computer hardware industry has been growing faster every year since its inception. It was the year of the hpcompaq mergerand it was either the best of. Carly fiorina left hewlettpackards headquarters in silicon valley late on november 6, 2001, to head home after an especially hectic day at the office, she pondered her companys merger plans. A corporate merger, like a marriage, can yield a whole stronger than its parts or it can end in utter disaster. Access to case studies expires six months after purchase date.
1304 724 1568 1 457 772 1471 1314 648 631 648 190 602 296 639 614 300 744 1215 155 693 693 564 1502 515 278 122 469 1114 920 83 413 1465 1386 838 1035 117