The paper analyses the HP-Compaq merger, the most controversial case in the US computer industry. Firstly the paper provides background information on both companies; secondly, outlines a brief of the HP-Compaq merger; thirdly, discusses about the activities in the industry; fourthly, analyses the condition of the US market (when the deal was announced); fifthly, outlines the Motives and/or Reasons of the merger; and, discusses the nature of the transactions. Moreover paper provides conclusion from the analysis of the merger, and outlines prospects of the combined HP.
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