Hewlett Packard Compaq merger was a good idea in my opinion. Its gives the two companies more room to expand and grow. Instead of competing with each other they will be working together. There are many aspects of this merger, lay offs, stock price drops, and whether or not it would be beneficial for both companies.
The merger would mean that Hewlett Packard would have to lay off 15,000 people through out one hundred and sixty countries. This is going against what HP is all about, they have built a reputation of job security and this would make their employees feel insecure. Were the fighting has been going on is at board meetings.
Hewlett feared that investors would revolt against the merger. His fears came true after the September 4th announcement of the merger. Since the talk about a merger between Compaq and HP hit Wall Street the price of Hewlett Packard?s stock has fallen from $23.61 cents a share to $17.70 a share. Since then the stock has continued to gradually decrease to $12.09 a share were it is as of October 21, 2002.
However, between the fallen stock prices and lay offs this merger is still beneficial for
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