Feeds

Revealed! The secret memos that ignited the HP/Compaq merger

Lunch? Sure!

  • alert
  • submit to reddit

The Power of One Brief: Top reasons to choose HP BladeSystem

We can exclusively bring you the email correspondence that sparked the merger talks between Hewlett Packard and Compaq. Analysts have been puzzling how this unlikely pairing took place.

Now we can explain how the two industry giants embarked on their discussions, amidst great secrecy, earlier this summer:-

It began with an exploratory foray from the HP Chief Executive:-


From: "FIORINA, CARLY (HP-Cupertino)" <carly.fiorina@hp.com>
To: "thedon@compaq.com"
Subject: Merger template
Date: 28 July 2001
Attachment: Merger template.DOC

Hi! How are you?

I send you this file in order to have your advice!

See you later. Thanks

This produced a swift response from her Compaq counterpart:-


From: "Michael D. Capellas" <thedon@compaq.com>
To: "FIORINA, CARLY (HP-Cupertino)" <carly.fiorina@hp.com>
Subject: re: Merger template
Date: 31 July 2001

Carly,

I'm surprised and delighted by your informal approach.

You'll recall that I mailed you back in March when I offered you the Alpha rights again. I wasn't hurt that you didn't reply. Scott still wasn't interested so Craig sent some people to work on a technology transfer. Which is great - I never could understand that junk.

I'm tremendously interested in a deal. We can get our people and your people to work out specifics.

Mike

Talks progressed swiftly, with the broad areas of the merger rapidly agreed upon. The details would - as Capellas indicated - be left to hand-picked executive teams later in the negotiations:-


From: "FIORINA, CARLY (HP-Cupertino)" <carly.fiorina@hp.com>
To: "Michael D Capellas" <thedon@compaq.com>
Subject: RE: re: Merger template
Date: 31 July 2001

OUT OF OFFICE REPLY --------------------------------

I'm out of the office this week.

My [@MACRO, INSERT=important] aides have alerted me to your email and [@MACRO, INSERT=vip] I think we should definitely [@MACRO, MARKUP=bold] get together at the earliest opportunity.

Carly Fiorina
Chief Executive Office
Hewlett Packard


From: "Michael D Capellas" <thedon@compaq.com>
To: >"FIORINA, CARLY (HP-Cupertino)" <carly.fiorina@hp.com>
Subject: Re: RE: re: Merger template
Date: 6 August 2001

Rock and Roll!

Let's get this sewn up right away. You know, we had a saying at Schlumberger - but I can't remember what it was. Something about logs, or grease. Whatever.

This a great opportunity. Let's not waste it.

Mike

And with that, the wheels were set in motion on the biggest IT merger of our times.

(On the other hand, if anyone has a more plausible explanation, we haven't yet heard it). ®

Seven Steps to Software Security

More from The Register

next story
NSA man: 'Tell me about your Turkish connections'
Spooks ask Dabbsy to suggest a nice hotel with pool
Russia sends SEX-CRAZED GECKOS to SPAAAAACE!
In space... no one can hear you're green...
Carlos: Slim your working week to just three days of toil
'Midas World' vision suggests you retire later, watch more tellie and buy more stuff
Yahoo! Japan! launches! service! for! the! dead!
If you're reading this email, I am no longer alive
Plucky Rockall podule man back on (proper) dry land
Bold, barmy Brit adventurer Nick Hancock escapes North Atlantic islet
Motorist 'thought car had caught fire' as Adele track came on stereo
'FIRE' caption on dashboard prompts dunderheaded hard shoulder halt
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.