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

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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.

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