So this was Compaq CEO Michael Capellas' grand plan to transform the company within 180 days: sell it to competitor Hewlett-Packard for $25 billion in shares.
Published:
4 September 2001 y., Tuesday
The two companies last night announced a mega-merger in which HP shareholders will have 64 per cent of the combo and Compaq shareholders will take 36 per cent.
HP CEO Carly Fiorina will be top banana for the new entity, assuming CEO and Chairman duties. Compaq CEO Michael Capellas will become president, and he's joined on the new board by four Compaq staffers.
And finally Fiorina gets her Big Deal. Last time she tried was the aborted $18 billion takeover of PWC's consultancy arm. That was a Vision-build-up-the-services-business-Thing. The takeover of Compaq is a chisel- away-at-costs/swamp-the-competition exercise in corporate aggrandisement.
The HP-Compaq combo will be the world's no.1 in all sorts of computer hardware, ranging from printers, PCs, and Unix servers. Combined revenues at $87bn will almost match those of IBM (although the duo has nothing like Big Blue's service revenues).
That's if the two companies retain market share in what will inevitably be a prolonged period of introspection. First the merger will have to get past competition authorities in the US and the EU; second, there will inevitably be thousands of lay-offs - and not just in the assembly plants. Already, $2.5bn worth of post-merger savings - 15,000 jobs - have been identified.
Šaltinis:
theregister.co.uk
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
In European sustainable energy week 2010, new EU energy commissioner presents strategy to reduce Europe’s dependence on fossil fuel.
more »
The EBRD is launching a Project Complaint Mechanism, which is expected to enhance the accountability and transparency of the Bank’s operations.
more »
The EBRD is boosting the availability of local currency financing in Armenia with a synthetic loan in Armenian Drams (AMD) worth $4 million to FINCA UCO CJSC for on-lending to local micro and small enterprises (MSEs).
more »
This year is the UN year of biodiversity and it brings endangered species into the spotlight.
more »
The World Bank Board of Directors today approved a US$65 million project to support the recovery of Haiti’s critical infrastructure as well as the reestablishment of basic State functions following the devastating 7.0 magnitude earthquake on January 12, 2010.
more »
Haiti’s arduous reconstruction and recovery process jolted forward today following fresh commitments to help the Caribbean nation rebuild in the wake of its devastating January 12 earthquake.
more »
A mission from the African Department of the International Monetary Fund (IMF) visited Uganda during March 4-17, 2010, to conduct the seventh and final review under Uganda’s Policy Support Instrument (PSI) and reach understandings on a policy framework for a new three-year PSI to cover the period 2010 to 2013.
more »
The European Economic and Social Committee (EESC), as the first EU institution, rose to the challenge of providing a comprehensive vision for the future of the Common Agriculture Policy (CAP), in advance of the European Commission's papers on the matter, due to be issued later this year and in 2011.
more »
The outlook for primary energy supplies, heat, and electricity is questionable for the Eastern Europe and Central Asia region, despite Russia and Central Asia’s current role as a major energy supplier to both Eastern and Western Europe.
more »
The Executive Board of the International Monetary Fund (IMF) today approved a 36-month, SDR 513.9 million (about US$790 million) Stand-By Arrangement (SBA) for El Salvador to help the country mitigate the adverse effects of the global crisis.
more »