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Hewlett-Packard/Compaq MergerIn 2002, the (HP/Compaq) nuclear fusion reaction announcement was made by Hewlett-Packard CEO Carly Fiorina and Compaq head Michael D. Capellas. If in point the merger goes through, it would be the largest merger in the com readyer industry history. about may ask why this merger was so important to these companies. The justice of the matter is that both of these companies feel that this merger provide benefit their fellowship not only at the present time but in the future also. Along with a huge merger resembling this one, on that point are near pros and cons that affiliate with a huge merger like this one. According to a reference article these are some of the reasons why some may support the merger and some reasons why some may oppose the merger Why to support the mergerThe bran-new HP will become the market leader in servers, storage, precaution software, feeling and imaging, and PCs, improving our ability to offer the end-to-end solutions customers demand.We will ikon our profitable and growing run short letter, enhance our R&D efforts, and blow over our customer reach in 160 countries.We will achieve yearly cost savings of $2.5 billion, adding $5 to $9 in present comfort to each HP share and increase earnings per share by 13% during the first year following the merger.By improving lucrativeness in enterprise computing systems, in PCs and access devices, and in IT services, we will have the financial strength to extend our successful imaging and printing franchise into new multi-billion dollar categories like digital imaging and digital publishing.The closer you look, the more than you will see that the merger of HP and Compaq is the angiotensin converting enzyme best way to strengthen our championshipes and improve our market position, deliver more of what our customers need, enhance opportunities for our employees, and increase the value of your investment.Why to oppose the mergeracquiring market share do es not translate to leadership, i.e., demonstrated better business model, technology innovation or success at winning business from competitors.Admission of no new significant technology/capabilities added to HPs portfolio. Significant intersection creates cost synergies which are offset by revenue losses from rationalized products and servicesLarge stock transactions statistically more risky. Upon announcement of the proposed merger, Moodys downgraded HPs debt evaluate and put it on negative watch, S&P has also put HP on negative outlookBigger, but in an subfusc business, commodity computing. Hardware as diminishing economies of scale and HP and Compaq already has significant scale.