540 team paper Essay Example | Topics and Well Written Essays - 750 words

540 team paper - Essay ExampleThat is, when both the companies announced their plans to merge, the financial replication that impeded the progress of the actualization of merger is the view, that, large stock transactions between HP and Compaq erupt to be statistically more risky. So, immediately after the announcement, H-Ps stock closed at $18.87, down crisply from $23.21 the previous trading day. On May 3, 2002, when the deal was officially consummated, the stock ended the day at $17.44 (KnowledgeWharton, 2004). But, this skepticism and the initial problems were overcome by the HP management by looking at the overconfident aspects of the merger. That is, the HP management wished that through large stock transactions (which were considered risky in the first place), HP will be able to achieve annual cost savings of $2.5 billion, which will add $5 to $9 to each HP share and at the same time will increase salary per share by 13% during the first year following the merger (cyberme dia India Online, 2003). This positive answer or strategy worked in favor of the merger in 2002. So, the outcome of the companys positive response to the financial issue, and the resultant merger, is HP was able to dominate the sector of desktops, laptops, and servers in various world markets. But, on the other side, even after the merger, there was opposition from the scions of HP separates. That is, both Walter Hewlett, son of HP founder William Hewlett and David Woodley Packard, son of co-founder David Packard opposed the merger for various reasons including the risks caused by large scale transactions. But, now the merged entity is surgical process smoothly without any major hindrances.Like in the Lester scenario, in which the merger plans between Lester Electronics and Shwang-wa does not earn due to the financial issues, the merger plans between French companies, Gaz de France and Suez O. K. also gets