Mr. Tutt,
Agreed. At the heart though, the issue needs to be resolved ASAP as every day seems to sap any confidence in either company. With so much corporate cr*p flying around these days, Wall Street just wants to see action and results. Unfortunately the deal won't be put up to vote until it clears regulation and who knows just how long that will take. Had it not been for this pis*ing contest both stocks could have probably held their own or treaded water until news came out.
Also IMO.
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Fiorina To HP Managers: Look Your People In The Eye
Says Compaq merger best of several options to push HP forward
By Edward F. Moltzen
CRN
New York - 1:39 PM EST Tues., Dec. 18, 2001
Hewlett-Packard Chairman and CEO Carly Fiorina, in a meeting with 100 top HP leaders, continued to stump for the proposed $20 billion-plus merger with Compaq Computer, saying the deal is the best of several options to move the business forward.
And, as to employee questions over how the mega-vendors will be combined, Fiorina told the managers to look employees "in the eye" when giving them answers.
The meeting was held last week, and Fiorina's remarks were made public in a filing with the U.S. Securities and Exchange Commission.
Since HP board member Walter Hewlett revealed his opposition to the Compaq merger, both sides have repeatedly made letters, presentations and meeting transcripts supporting their side of the fight available to shareholders via SEC filings--as each attempts to get the votes needed to win.
HP said in its most recent filing that the summary of the meeting, held Dec. 13, was also posted on HP's internal Web site.
In the meeting, which HP said will be one of several held at regular intervals to brief top management on the merger's status, Fiorina said she was "disappointed and sad" that that Hewlett and the Packard families have publicly opposed the merger.
"Ultimately, it is our [HP board and management team's] responsibility to build healthy, sustainable businesses," she said, according to the filing. "That is the best way to protect jobs, it is the best way to serve customers and it is certainly the best way to serve the majority of our shareowners."
Fiorina took aim at critics of the deal, who have said that HP has other options available to build its business.
"We are absolutely convinced that while this company always has options, we have chosen the best one," Fiorina said.
The merger, she said, boosts HP's overall strategy. "Acquisitions are tactics, not strategy," she said. "Now this is a big hummer tactic, but it's a tactic. It's a tactic based on the strategy we are pursuing, which we continue to reconfirm over and over again based on market requirements, customer requirements and where the industry is heading."
No date has yet been set for an HP shareholder vote on the proposed merger. The Hewlett and the Packard families, along with their foundations and relatives, control about 18 percent of the total vote of HP stockholders. A majority is needed to approved the merger, in addition to Compaq shareholder approval and regulatory OKs in both the United States and Europe. |
