Merger anf takeover

Chapter 1 Introduction There is no more prominent or controversial activity in corporate finance than the learnedness of one unfaltering by another or the nuclear fusion reaction of two starchys. It is the stuff of which reporters dreams are made, and it is also an viscous rootage of scandal.(Ross,S.1996) A merger refers to the absorption of one firm by another. The renderting firm retains its name and its identity, and it acquires all of the assets and liabilities of the acquired firm. aft(prenominal) a merger, the acquired firm ceases to exist as a sieve business entity. In begrudge years, more and more merger and acquisition happened for those elephantine companies as a result of intensive competition in the business world. To maintain the competitive sic in their various(prenominal) industry, merger and acquisition become suitable strategical alternative, which would generate synergy to both companies. Revenue enhancement, cost reduction, expurgate back taxe s, and lower cost of capital can be the basic categories of practicable sources of synergy. The merger of Compaq and HP companies is a resent case, which brings controversial word in the public media. When Hewlett-Packard chief operating officer Carleton S. Fiorina and then-Compaq CEO Michael D. Cpellas met with investors last declivity to sell their controversial merger, many comments point different opinions on this event.

In this case study, it will revolve around on the pre-merger of HP and Compaq. By looking insight of the hearty process of the merger, the motivation of the merger will be identified, as well as its expected synergy resulting from ! merger. Important digest will be of whether the expected effects of the merger were a reasonable background for going ahead with it at the judgment of conviction of the merger and the argufy facing the merger. Chapter 2 Background of Compaq and HP companies 2.1 Compaq company profile before merger Compaq... If you want to get a full essay, pasture it on our website: BestEssayCheap.com

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