In September 2001,technology company Hewlett-Packard (HP)announced a proposal to acquire Compaq Computer Corporation for $25 billion in stock.It offered shareholders a deal whereby they could exchange one Compaq share for one HP share.At the time,HP shares were worth 18% more than Compaq shares.In March 2002,shareholders narrowly approved the takeover.What type of acquisition took place in this situation? Explain what happens in this type of an acquisition.

Question

Quizplus · Accepted Answer

The Answer of In September 2001,technology company Hewlett-Packard (HP)announced a proposal to acquire Compaq Computer Corporation for $25 billion in stock.It offered shareholders a deal whereby they could exchange one Compaq share for one HP share.At the time,HP shares were worth 18% more than Compaq shares.In March 2002,shareholders narrowly approved the takeover.What type of acquisition took place in this situation? Explain what happens in this type of an acquisition.

In September 2001,technology Company Hewlett-Packard (HP)announced a Proposal to Acquire