Case: Hewlett-Packard—Compaq: The Merger Decision

Case: Hewlett-Packard—Compaq: The Merger Decision

Please answer the following questions. Limit your responses to four pages double spaced total for all three questions. They will be graded based on effort, not correctness. These should provide a good foundation for our next class discussion of the case.

1. Do you support Fiorina’s proposal to acquire Compaq? What are the pros and cons?

2. Why was the board so divided on this issue? How would you rate HP’s board in the way they handled this complicated strategic issue?

3. What is your assessment of the role played by third parties – consultants, investment bankers, analysts and institutional investors – in this deal?

4. An interesting observation about the case that youwouldlike to share with the class.