Big iron: HP to buy Compaq in $25 billion deal
Analysts say Hewlett-Packard faces a rocky road, as it works to survive a sour PC market while combining Compaq business units that are quite similar to its own.
| Buyout to combine two of the largest names in PC world
By CNET News.com Staff September 5, 2001, 1:30 p.m. PST Analysts say HP faces a rocky road, as it works to survive a sour PC market while combining Compaq business units that are quite similar to its own. Meanwhile, investors send HP shares lower, pushing the total value of the proposed merger below $20 billion just a day after it was announced.
update The buyout was valued at $25 billion, but investors have not looked kindly upon the deal. HP's stock has since dropped by about one-quarter. September 5, 2001 Services, servers to challenge HP By becoming a single company, Hewlett-Packard and Compaq hope to take on IBM and others in services, servers, software and storage. September 5, 2001 Dell still tough to beat Does the merger of Hewlett-Packard and Compaq Computer scare Dell Computer? Probably not, say analysts. September 4, 2001 Should Microsoft worry? The software giant could be in for some short-term headaches as a result of the merger between Hewlett-Packard and Compaq Computer. September 4, 2001 Buyout makes record books update The combined company is expected to have total revenue just slightly less than IBM's. On the road to union, however, some 15,000 workers will be laid off. September 4, 2001 Will HP plus Compaq add up? markets Analysts are already raising red flags about how well the companies will handle the merger. September 4, 2001
document On Sept. 4, 2001, Hewlett-Packard sent an e-mail message to all of its employees. This letter was obtained from a filing with the Securities and Exchange Commission. September 4, 2001
Merging is the easy part |  | |
Analyst skeptical of HP-Compaq merger