The Merger of Hewlett-Packard and Compaq (B): Deal Design Harvard Case Solution & Analysis

In 2002, the financial manager is considering how to vote its shares of Hewlett-Packard on the proposal for a merger with Compaq. (A) case provides information on strategic and financial motives for the merger. Completed assessment included both HP and Compaq and a detailed summary of the lead counsel (Carly Fiorina) and critic (Walter Hewlett). Problems for students to appreciate the perspective cooperation in trade and critically evaluate strategic arguments (for and against). (B) provides a detailed case study of the conditions of the proposed merger. Challenges for students is to critically evaluate the specific design of the transaction and its impact on shareholders. Of particular interest is the effect on earnings per share (ie, EPS dilution), the management of the new company and whether it is, in fact, a merger of equals. (C) describes the case of a proxy contest results. That is the task for the student is to evaluate the strategy of each of the parties to communicate with shareholders and presenting arguments. Objectives of the module case to expose students to the mechanics of proxy contests, perform skills assessment and strategic analysis and critical assessment of the deal. (A) and (B) cases can be taught in a sequential classes or one class. (C) If, as a rule, to be distributed at the end of a brief discussion. "Hide
by Robert F. Bruner, Anne Buchanan Source: Darden School of Business 13 pages. Publication Date: September 3, 2004. Prod. #: UV3982-PDF-ENG

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The Merger of Hewlett-Packard and Compaq (B): Deal Design

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