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Friday, 3 May, 2002, 21:49 GMT 22:49 UK
HP-Compaq merger completed
Compaq and HP logos
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.

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Jeff Christian, director, Christian and Timber
"The company has not performed as well as it could have, but the board is patient because many of the woes Fiorina inherited."
Andrew Ross Sorkin, New York Times
"There was no smoking gun, there were overtones but technically there was not enough to substantiate the claim."
The BBC's Angela Garvey
"A deal that would rank as the largest merger ever in the technology industry"
See also:

18 Mar 02 | Business
HP and Compaq set for final showdown
20 Mar 02 | Business
Shareholders hail 'historic' vote
05 Sep 01 | Business
Jobs slashed in biggest PC merger
06 Sep 01 | Business
Tough sell for PC giants merger
04 Sep 01 | Business
Profile: HP's Carly Fiorina
02 Apr 02 | Business
Lawsuit disputes HP-Compaq merger
08 Apr 02 | Business
Next hurdle for HP-Compaq merger
01 May 02 | Business
HP boss emerges victorious
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