Assignment task: Based on the HP's Disastrous Acquisitiin of Autonomy.
Problem 1: Why do you think Apotheker was eager to make an acquisition?
Problem 2: Why do most acquisitions result in paying a premium over the market price? Was 59% premium for Autonomy reasonable?
Problem 3: Was it unethical for Apotheker to propose the acquisition at the 50% premium? Was it unethical for Autonomh to go along with the price at a 50% premium? Who suffers the consequences of an overpriced acquisition?
Problem 4: Is there anything HP and Autonomu could have done differently to avoid the public backslash and share price drop the company suffered?