H-P outraged at coup report
Ex-CEO said to be asked by Hewlett to replace Fiorina
By Deborah Adamson, CBS.MarketWatch.com
Last Update: 1:18 PM ET March 2, 2002
PALO ALTO, Calif. (CBS.MW) -- Hewlett-Packard on Saturday denounced as an "outrage" the reported recruitment of a former CEO by dissident board member Walter Hewlett in an apparent corporate coup d'etat.
"The reported action of Walter Hewlett to recruit former HP CEO Lew Platt as a replacement CEO for Carly Fiorina is an outrage and a blatant disregard of a director's responsibilities," H-P said in a statement. "Calls for her departure are presumptuous, baseless and irresponsible."
The Financial Times, on its FT.com Web site, reported Saturday that Hewlett approached Platt, who was CEO at H-P from 1992 to 1999 until Fiorina replaced him.
The proposed $22 billion merger between H-P (HWP: news, chart, profile) and Compaq (CPQ: news, chart, profile) has run into opposition from the Hewlett and Packard families and their foundations, which collectively own 18 percent of H-P. Fund managers representing 2 percent of the shares also have said they would vote against the deal.
The battle for the merger has taken several twists and turns, with the latest being Hewlett's reported attempt to replace Fiorina.
Hewlett "obviously intends to mislead and distract shareholders" by raising this issue, H-P said. Furthermore, its merger with Compaq is a business strategy that's "strongly supported" by management and all board members except for Hewlett, the company added.
H-P calls Hewlett's "unilateral" action a blemish on the character and reputation of the company, since he did not confer with other board members about his plan. The computer company describes Hewlett's behavior as "conduct unbecoming" that does not serve the interest of its shareholders.
The Financial Times, citing sources close to the discussions, said Hewlett has approached Platt to take the helm as interim CEO if shareholders on March 19 reject the company's plan to merge with Compaq.
Hewlett reportedly asked Platt to consider returning to H-P to provide stability and continuity while the board looks for a permanent replacement for Fiorina. He would discuss the matter of hiring a new CEO with the board after the merger is defeated. See the Financial Times story.
Deborah Adamson is a reporter for CBS.MarketWatch.com in Los Angeles. |
