HP CFO defends campaign to woo merger votes
4/11/2002 8:06:22 PM
PALO ALTO, Calif., April 11 (Reuters) - Hewlett-Packard Co. Chief Financial Officer Bob Wayman told employees in a recorded message on Thursday that the company did not behave unethically or illegally in its last-minute lobbying to secure votes for its proposed purchase of Compaq Computer Corp.
"Frankly, I find these allegations both insulting and infuriating," Wayman said in a transcript of the recorded memo that was also posted on HP's internal Web site and which Palo Alto, California-based HP provided to reporters.
His comments follow a March 17 voicemail that Chief Executive Carly Fiorina left for Wayman two days before the merger vote and which was leaked to the San Jose Mercury News. The newspaper subsequently posted the voicemail recording on its Website on Wednesday.
In the March 17 voicemail, Fiorina told Wayman that HP "may have to do something extraordinary" to win the backing of two large institutional shareholders for HP's planned $19 billion purchase of Houston-based Compaq (CPQ) .
An HP spokeswoman said that both HP internal security and outside security consultants are investigating the leaked voicemail.
"We won't be providing anymore detail on the investigation," she said.
Wayman also said that computer and printer maker HP (HWP) is "vigorously investigating this breach along with others that have occurred in recent weeks and we intend to prosecute these matters to the fullest extent of HP policy and applicable law."
Maverick board member Walter Hewlett filed suit against HP alleging HP effectively bought votes from one of the large shareholders, Deutsche Bank, in the March 19 vote.
HP says the suit, set for a three-day trial on April 23, is baseless.
"We spent countless hours presenting the business value of our position up until every vote was cast, but we never, ever crossed any ethical or legal lines," Wayman said in Thursday's memo. "The only good news about participating in a trial is that the facts will come out, the truth will be heard and our honor will be restored."
Wayman also expressed support for Fiorina, who has come under fire from some quarters and whose resignation Hewlett has called for.
"I am convinced there is no harder working CEO at any company, anywhere," Wayman said. "Carly works courageously and tirelessly on behalf of this company and all of its constituents.
"While many of you don't have the opportunity to see it up close, I do, every day," Wayman said. "It's time that we embrace this company's future and give our leadership our full support." |
