HP to buy Compaq?
Is has been reported that Hewlett-Packard will buy Compaq for an estimated $47.5 billion. Both the New York Times and Wall Street Journal have reported the deal, citing people close to the negotiations, but both companies have declined comment. Compaq Australia said it could not confirm or deny the reports.
The merger would create a company that would rival industry leader IBM. In the past year if the companies were one it would have had revenues of $165 billion (HP $89 billion, Compaq $76 billion), slightly less than IBM's $171 billion. The merger reportedly asked for one Compaq share to be exchanged for 0.63 HP shares. HP chief executive Carly Fiorina, would continue to be chief executive of the combined company, the newspapers reported.
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