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    Mergers & Acquision Strategy

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    Company HP/Compaq

    Were there any contingency plans or options that should have been anticipated or used for the M&A strategy? If there are any, what would you have recommended? Why?

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    Company HP/Compaq in 500 words

    Were there any contingency plans or options that should have been anticipated or used for the M&A strategy? If there are any, what would you have recommended? Why?
    There were no contingency plans in place for the M&A strategy of merger between HP and Compaq. In fact the merger of HP/Compaq was the contingency plan of Carly Fiorina for the uncertain future of HP. She had planned that the HP/Compaq merger would solve all the existing problems. However, there was opposition to the merger. This conflict of management could spell disaster for the company. Walter Hewlett decided to oppose the deal. The contingency plan at this stage could have been to abandon the deal. This would have cost the company $675 million to terminate the deal. This contingency plan was appropriate for the deal but was not used. I would have recommended the termination of the deal at this stage so that the damage was minimized. Under circumstances of conflict a merger would not be very ...

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