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    Hewlett Packard -Compaq Computers Merger

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    A recent merger of note is that of Hewlett Packard and Compaq Computers. When the merger was announced, it was widely criticized as not making 'economic sense.' What are the reasons for and against the merger? What is the performance of the consolidated company since its completion?

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    Firm can purchase other corporation for various reasons:
    1. Economies of Scale
    2. Economies of vertical integration
    3. Complementray resources
    4. Unused Tax shields
    5. Surplus funds
    6. Eliminating Inefficiencies
    Sometimes they can pay too much for the merger, This thing happens when Weath without merger is more than wealth with merger for the corporation. The reasons ...

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    This discusses the case study of Hewlett Packard -Compaq Computers Merger