Hewlett-Packard closes $18.7 billion Compaq merger
SAN FRANCISCO, May 3 (Reuters) - Hewlett-Packard Co.
<HWP.N> on Friday closed the largest acquisition in technology
industry history, ending a divisive merger battle as it bought
Compaq Computer Corp. <CPQ.N> for $18.69 billion in HP stock.
Opponents led by Walter Hewlett, son of HP co-founder Bill
Hewlett, tried in vain for eight months to stop the deal.
Shareholders by a bare 3 percent margin approved the deal,
which creates a computer and printer maker with sales of nearly
$80 billion, rivaling industry leader International Business
Machines Corp. <IBM.N>.
Compaq shares closed up 2.23 percent, or 24 cents, at
$11.00, 3 cents below the $11.03 value implied by the merger
terms, which assign 0.6325 HP shares for each one of Compaq. HP
shares rose 2 percent, or 35 cents, to $17.44.
HP will change its symbol on the New York Stock Exchange to
HPQ <HPQ.N> from HWP beginning on Monday, while Compaq shares
will trade no more. An HP spokeswoman said Compaq shareholders
would get letters explaining the stock swap in the next week.
The plan by HP to purchase the No. 2 personal computer
company overcame its last major hurdle this week when a
Delaware court ruled against dissident Hewlett, who had filed a
lawsuit to block the merger.
The new company officially launches on Tuesday, when HP
will begin rolling out product plans, announce more senior
managers, and start the grueling process of cutting some 15,000
jobs, about 10 percent of the new company's work force.
((Peter Henderson, San Francisco Bureau 415 677-2578
peter.henderson@reuters.com)) |
