By Julian Goldsmith, 4 September 2001 07:18
NEWS HP is to acquire Compaq Computer in a $25bn stock swap that is being hailed as the biggest takeover in the history of the sector. HP chairman and CEO, Carly Fiorina, will become the CEO of the new company which is projected to have revenues of $87.4bn, rivaling IBM. The deal is a response to price cuts in the sector and the companies said the merger should allow them to cut costs to the tune of $2.5bn by 2004. Fiorina told Reuters: "At a particularly challenging time for the IT industry , this combination vaults us into a leadership role with customers and partners. Together, we will shape the industry for years to come."
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