ISS Report On HP-Compaq Merger Expected Early Next Week
By: Mark Boslet, Of DOW JONES NEWSWIRES
PALO ALTO , Calif. -(Dow Jones)- Institutional Shareholder Services does not expect to release its eagerly anticipated analysis of Hewlett-Packard Co .'s ( HWP) planned purchase of Compaq Computer (NYSE: CPQ - news) Corp. (CPQ) until next week.
The proxy-advisory firm had hoped to issue the study, with a recommendation on how to vote in the hotly contested $22 billion merger, this week. Instead, the firm needs more time to complete its report, said Vice President Patrick McGurn.
He said the pair of reports is expected by Tuesday. The study will go to about 750 large institutional investors who subscribe to ISS's services. Together, these institutions hold about 23% of Hewlett-Packard's outstanding shares, according to H-P Chief Financial Officer Robert Wayman.
The closely watched reports could become important telltales of the fate of the two big computer makers' merger. Many institutional shareholders are anxious to review the study before they complete their own evaluations of the combination.
The ISS recommendation will directly guide the vote of Barclays (NYSE: BCS - news) Global Investors, a top H-P shareholder with 58.5 million shares, or about 3.1% of the stock. Barclays turned over its decision to ISS because its chief executive, Patricia Dunn, is a member of H-P's board.
A proxy vote for H-P shares is scheduled on March 19 and for Compaq shares on March 20 .
-By Mark Boslet, Dow Jones Newswires, 650-496-1366; mark.boslet@dowjones.com
(This story was originally published by Dow Jones Newswires)
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