Merger mystery; HP and Compaq.(Carly's on her own)(Carly Fiorina)(Michael Capellas leaves Hewlett-Packard Co.)

Economist (US), The, November, 2002

Carly the survivor

What does the departure of Michael Capellas say about the merger?

WHEN two big computer makers, HP and Compaq, completed their $19 billion merger in May, many believed that Carly Fiorina, chief executive of the combined firm, would be the first to go. She was considered damaged goods after the bruising proxy battle preceding the deal. But on November 11th it was Michael Capellas, Compaq's former boss and second in command at the new HP, who resigned. He is expected to take the helm at WorldCom, a bankrupt telecoms firm.

HP's shares fell by 11%, as investors worried that, without Mr Capellas's operational skills, Ms Fiorina would not be up to the job of seeing through the complex merger. Yet it was not integration pains that...

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