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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.

HP stock watch
HP and Compaq announced a stock-swap deal worth $25 billion. Because of fluctuations in the stock, the value of the deal may change. This is the approximate value (20-minute delay):
HP's incredible shrinking deal
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 
Click here to Play

Analyst skeptical of HP-Compaq merger
Roger Kay, research manager, IDC
Fiorina to HP ranks: A "historic day"
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
news analysis Price pressures, slowing sales and a sour economy are just the beginning of challenges for HP and Compaq. Analysts frown at the large amount of overlap between the two. Will the companies make it work?
September 4, 2001 
Fiorina: The quest continues
Only a month ago, pundits were speculating whether Carleton Fiorina would be dismissed as chief executive of Hewlett-Packard. Now she finds herself running the second-largest computer company behind IBM.
September 3, 2001 
Compaq's short, turbulent history
The PC maker lived the Hank Williams life. It ran hard, got famous and died before its time.
September 4, 2001 

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