HP buys Compaq for $25 billions

NEW YORK, SEPT. 4. The computer world witnessed a mega merger today when Hewlett-Packard (HP) bought Compaq Computer Corp. for $25 billions in stock.

The merger would create an $87 billions global technology leader offering the industry's most complete set of information technology products and services for both business and consumers, the companies said in separate statements.

The New HP would have assets worth $56.4 billions and annual revenues of $87.4 billions and operating earnings of $3.9 billions from 160 countries.

The Palo Alto-based HP would own 64 per cent of the combined company and Compaq would own 36 per cent. HP will issue 0.6325 of share for each Compaq share and the deal is expected to close in the first half of 2002.

The HP chairman and CEO, Carly Fiorina would be chairman and CEO of the combined company with the Compaq chief CEO, Michael Capellas, becoming president.The merged company would be based in Palo Alto and operations in Houston would be focussed on engineering and product development.

- PTI

Send this article to Friends by E-Mail

Section  : Front Page
Previous : Mahanta quits as AGP chief
Next     : SC hearing on petitions against Jayalalithaa's
           appointment