HP-Compaq merger completed

US computer giant Hewlett-Packard has completed its $18.6bn merger with Compaq, it said on Friday.

Rebel Hewlett Packard shareholder Walter Hewlett gave up his fight to block the acquisition on Wednesday after losing a court case.

The deal was agreed by shareholders and the deal has now been closed, clearing the way for the launch of the new combined company on 7 May.

Hewlett-Packard

Founded: 1938

Employees: 86,200

2001 Revenues: $45.2bn

2001 profits: $408m

CEO: Carly Fiorina

On that date, HP will begin rolling out product plans, announce more senior managers, and start the process of cutting some 15,000 jobs, about 10% of the new company's workforce.

The merger between the two companies is the hardware sector's biggest ever tie-up.

Many HP shareholders opposed the deal because they thought it would distract from day-to-day operations at a time when computer makers worldwide were struggling to win new orders.

There were concerns also that HP was being asked to pay over the odds for Compaq.

Compaq

Founded: 1983

Employees: 63,700

2001 Revenues: $33.5bn

2001 loss: $785m

CEO: Michael Capellas

The deal - originally proposed in June 2001 - prompted a bitter battle and the shareholder vote was only won by just 3%.

Compaq shares closed up 2.23%, or 24 cents, at $11.00, 3 cents below the $11.03 value implied by the merger terms, which assign 0.6325 HP shares for each one of Compaq.

HP shares rose 2% percent, or 35 cents, to $17.44.

An HP spokeswoman said Compaq shareholders would get letters explaining the stock swap in the next week.