Feds OK the HP-Compaq Merger
One more roadblock was removed from the HP-Compaq merger when antitrust regulators gave the deal a green light adding to the growing momentum for the merger just before a critical shareholder vote.U.S. antitrust regulators has given the green light to Hewlett-Packard Co.s proposed buyout of Compaq Computer Corp., adding to the growing momentum for the merger just two weeks before a critical shareholder vote. Todays ruling by the Federal Trade Commission, combined with an earlier decision by the European Union, means HP was able to convince regulators that its buyout of Compaq would not give the merged company undue influence over high-tech markets. "The Commission conducted an extensive investigation of the mergers effect on competition in markets for personal computers, servers, and microprocessors, among other products," the FTC said in a statement released after the stock markets closed Wednesday. "Based on that investigation, the Commission did not find reason to believe that the proposed transaction would impair competition in any relevant market."
The FTCs decision came just one day after the HP-Compaq merger won the endorsement of an influential investment group, Institutional Shareholder Services. The ISS support was seen as critical to HP securing the backing of its institutional investors when the merger is put to a vote on March 19.