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Hewlett-Packard/Compaq Merger
In 2002, the (HP/Compaq) merger announcement was made by Hewlett-Packard CEO Carly Fiorina and Compaq head Michael D. Capellas. If in fact the merger goes through, it would be the largest merger in the computer industry history. Some may ask why this merger was so important to these companies. The truth of the matter is that both of these companies feel that this merger will benefit their company not only at the present time but in the future also. Along with a huge merger like this one, there are some pros and cons that affiliate with a huge merger like this one. According to a reference article these are some of the reasons why some may support the merger and some reasons why some may oppose the merger:
Why to support the merger:
? The new HP will become the market leader in servers, storage, management software, printing and imaging, and PCs, improving our ability to offer the end-to-end solutions customers demand.
? We will double our profitable and growing services business, enhance our R&D efforts, and extend our customer reach in 160 countries.
? We will achieve annual cost savings of $2.5 billion, adding $5 to $9 in present value to each HP share; and increase earnings per share by 13% during the first year following the merger.
? By improving profitability in enterprise computing systems, in PCs and access devices, and in IT services, we will have the financial strength to extend our successful imaging and printing franchise into new multi-billion dollar categories like digital imaging and digital publishing.
? The closer you look, the mo ...