| HBS Case Collection
(Revised September 2004)
Hewlett-Packard-Compaq: The Merger Decision
Hewlett-Packard's proposed $24 billion acquisition of rival Compaq marked the largest merger in the history of the computer industry. The merger was Hewlett-Packard's response to sweeping changes impacting the technology industry. The severity of the stock market's reaction to the deal's announcement, coupled with a "slim but sufficient" 51.4% shareholder approval margin, left many wondering whether the deal was beneficial for shareholders.
Keywords: Cost vs Benefits;
Mergers and Acquisitions;
Business and Shareholder Relations;