HP-Compaq merger remains Carly Fiorina's legacy: former CEO on tap to deliver keynote at March corporate growth conference.

• Author: Cote, Mike
• Position: COTE'S colorado

CARLY FIORINA DEFINES TRUE GRIT and risk-taking. The former chief executive of Hewlett-Packard has the distinction of being the first woman 10 run a Fortune 211 m company. While at HP, Fiorina presided over the company's $24 billion takeover of Compaq, a deal she publicly defended last August as HP considered spinning off its PC business.

Since being forced out by HP's board in 2005, Fiorina wrote the memoir "Tough Choices," ran as a Republican for U.S. Senate in California, and formed a consulting business, a foundation and an education outreach program.

Fiorina will deliver the keynote address at ACG-Dcnver's Rocky Mountain Corporate Growth Conference, capping the March 13-14 gathering at the Inverness Hotel and Conference Center. In an exclusive interview with ColoradoBiz. she spoke candidly about her career path and tin-Compaq deal. (Coming in February: Fiorina talks about battling cancer on the campaign trail.

On Corporate Scandal

If you look at the financial crisis or Knron, or any of the scandals that have plagued the business community, it's always because people forget the basics. They forget the fundamentals of business, which is about sustainable long-term value. And they rush off for short-term gain. In a century where things arc changing incredibly rapidly, where it's more and more challenging to compete, the fundamentals, the basics, are more important not less important.

On the Compaq Merger

It was clearly the right thing to do. Everybody thinks that now. HP is the largest technology company in the world. Its diversification gives it huge power. I found it interesting that recently I he new CEO said, "Just kidding, we're going to keep the PC business,' because she and the board realized, despite earlier decisions to go differently, that the diversification of the supply chains and the distribution channels is one of HP's huge powers.

[ILLUSTRATION OMITTED]

We made the decision because it was the best way to create long-term sustainable value. In the short term, I also told both the board of HP and the board of Compaq before l hey approved the deal that the stock would drop. I said to the HP board that our stock would drop 20 percent it dropped 23. I was pretty close.

On Dealmaking

The board of Compaq was being told by their bankers that their stock would rise the day the deal was announced. I told them the stock would fall. It did. Deals that create long-term value aren't obvious to...