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Thursday 18th April 2002
HP claims narrow victory 5:32PM, Thursday 18th April 2002
HP management claim to have won the day over the Compaq merger in a preliminary tally by the independent inspectors.

HP claims a victory of some 45 million shares, or about 2.8 per cent, and says the outstanding votes yet to be tallied are an insignificant number. The company is also quick to add that the shareowners not affiliated with the Walter Hewlett-led anti-merger resistance voted for the merger for the deal by a margin of two to one, and that of those voting against, nearly half were associated with the Hewlett and Packard families and foundations. The figures read: 837.9 million votes 'for', and 792.6 million votes 'against'.

The results
 
 
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would mean a victory for the HP board even if a court review throws out votes that opponents allege the company had unduly influenced. Indeed, the trial is set to start next week to assess Walter Hewlett's claims that HP management had intimidated Deutsches bank, and other shareholders, into voting for the merger. Deutsches bank has since said it voted independently although a leaked voicemail message left by CEO Carly Fiorina to HP's CFO suggested that the management would have to do 'something extraordinary' to turn these votes around.

HP says it could tie up the merger inside a fortnight and is champing at the bit, indicating that if Walter Hewlett wants a recount he should ask for it now. Said Carly Fiorina: 'We are eager to put this difficult period behind us and look forward to doing business as the new HP'. PC vendors such as Dell have said that they have been enjoying a little extra market share thanks to a soft HP while the merger dispute rages on.

With no further intervention from the Hewlett camp, a final certified tally could be on the cards in a week and a half, although a spokesperson for Mr Hewlett has said that a challenge would be forthcoming.

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