Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    Compaq Shareholders Approve HP Deal

    By
    eWEEK EDITORS
    -
    March 20, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Shareholders of Compaq Computer Corp. overwhelmingly approved the sale of the 20-year-old company to Hewlett-Packard Co. in a stock-based deal valued at about $20 billion.

      As a result of the merger, Compaqs 63,000 employees will be melded with HPs 85,000 workers, creating the worlds second largest computer company, behind IBM. However, HP and Compaq officials have warned that the deal will result in the elimination of about 15,000 across the two companies.

      Unlike the rancorous HP shareholders meeting on Wednesday, which was symbolic of the companys bitter six-month proxy fight to win approval, Compaqs special shareholder vote today was uneventful, with the deal drawing support from about 90 percent of the voters.

      Compaq Chairman Michael Capellas, who would become president of HP following the merger in early April, touted the deal as the best alternative to assure shareholders a better return on their investment.

      “I am gratified that Compaq shareholders have seen the power behind the merger of these two great technology companies and given the board of directors and management their resounding support,” he said following todays vote.

      While Capellas said Compaq is prepared to move forward with the acquisition, the merger cannot be completed until HPs vote is officially certified by IVS Associates in Newark, Del., a process the company said could take several weeks.

      Merger foe Walter Hewlett, an HP board member and son of one of the companys co-founders, yesterday rejected HP Chairman Carly Fiorinas assertion that the outcome of the vote had been determined, based on HPs preliminary estimates, and urged all parties to await the official tally.

      “The results of todays vote are too close to call,” Hewlett said at a news conference yesterday in Cupertino, Calif, where HPs vote was held. “In a proxy contest this close … it is simply impossible to determine the outcome at this time.”

      Should the merger go forward, it will mark the end of what was for seven years the worlds largest PC vendor.

      Compaq was founded in 1982, following the oft-told story of how its three founders, then employed by Texas Instruments, drew up plans for a new IBM-compatible portable computer on a napkin in a Houston restaurant.

      Compaqs business surged during the 80s and early 90s, shattering business growth records, as the company drew away market share from then industry leaders IBM and Hewlett-Packard by offering reliable PCs and servers based on industry standards at a lower cost.

      But as Compaqs business grew, it ended up losing its low-cost competitive edge as it tried to emulate IBMs product breadth through the acquisitions of high-end computing companies such as Tandem and Digital Equipment Corp. Those mergers, undermined by flawed integration efforts, resulted in mounting losses.

      At the same time, Compaq saw its share of the once lucrative PC market erode due to competition from direct-order companies such as Gateway Inc., and more notably Dell Computer Corp., which last year ousted Compaq as the worlds largest PC vendor.

      Hard hit by an industry-wide downturn in sales last year and facing increasing shareholder pressure to revive earnings, Compaqs board agreed to a buyout by HP last September.

      Related stories:

      • Its Compaqs Turn: Shareholder Approval Expected
      • Combining Services Efforts a Formidable Task
      • The Urge to Merge
      • HP Shareholders Complete Vote
      • HP Soap Opera Nears Close
      • HP Printer Biz Hungry for Deal
      • Fiorina Responds to Compensation Charges
      • Special Report: HP Courts Compaq
      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×