HP and Compaq have announced that they have completed their proposed $20 billion merger, the largest such deal in the history of the technology industry.
The deal was finally sealed on Friday, May 3 after the last remaining legal obstacles to the merger were overcome. Walter Hewitt, former director and son of HP’s founder, decided against an appeal to try overturn a Delaware court’s decision to dismiss a lawsuit disregarding the shareholder vote on the deal. Shareholders had originally voted in favor of the merger on March 19 by a margin of three per cent.
Company employees face an uncertain future in the wake of the merger. HP and Compaq employees are awaiting news on the 15,000 proposed job cuts deemed necessary to enable the smooth transition towards the integration of the two company’s operations. A number of HP and Compaq products are also likely to disappear as a result of the merger.
Following the conclusion of the merger, Compaq’s shares were suspended from the New York Stock Exchange on Monday, May 6. The new organization’s shares will now be traded under the HPQ ticker symbol.