Merger Frenzy -- Lemmings Joining Paws as They Jump off the Cliffgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Corporate mergers are occurring at an unprecedented rate. One of the largest tasks that merger partners must undergo is to convert the data of one of the companies to the other's systems. Usually, the acquired company converts to the purchaser's systems.
Given all of the time and resources that most large firms need to expend on Y2K, this is a terrible waste of money and people. Unless one of the partners is already compliant, this conversion throws a monkey wrench into the planning and operation of the Information Systems department.
The merged company can perhaps get around this problem by putting off the conversion until after 1-1-2000. However, they have to wait until then to obtain the cost savings that come from eliminating redundant departments and employees. Of course if you want to gain a monopolistic or oligopolistic market position, you can do it now. The Clinton Administration has everyone distracted with the Microsoft suit, while the oil behemoths are consolidating. It isnt strange that gas prices have been going up so fast during the past month. Not only is OPEC trying to raise prices, but with each oil merger our options are decreasing. I have always used ARCO because they were the cheapest of the majors. Once BP takes over, expect more price rises.
-- Incredulous (email@example.com), April 01, 1999