Deutsche says it 'voted fairly' on HP deal
By Scott Morrison in San Francisco
Published: April 16 2002 02:26 | Last Updated: April 16 2002 02:38
Deutsche Asset Management said on Monday it exercised its "independent judgement" when deciding to vote in favor of Hewlett-Packard's $19bn bid for Compaq Computer.
In its first public statement on its role in HP's controversial Compaq transaction, the asset management firm said its decision to support the deal was based upon presentations made by HP's management and the opposition camp lead by Walter Hewlett, the dissident director trying to derail the deal.
"The decision was made by Deutsche Asset Management's proxy committee who exercised its independent judgement solely in the interest of its clients," the firm said in a statement.
Deutsche Asset Management's decision to switch its vote at the last minute to support the deal is at the heart of a lawsuit filed by Mr Hewlett.
He has alleged that HP coerced or enticed the asset management group into voting for the deal, with the understanding that Deutsche Bank's business relationship with HP would suffer if it did not support the merger.
With some people close to the companies saying the margin of victory was as little as half a percentage point, the votes cast by Deutsche Bank could have been the deciding factor. Mr Hewlett has asked a Delaware court to throw out the results of the vote.
The dispute took another unexpected twist on Monday when HP acknowledged that the Securities and Exchange Commission and the US attorney's office for the southern district of New York were investigating whether the company had acted improperly votes in order to win the March 19 shareholder vote.
The revelations, made by HP in a SEC filing, are the first hint of possible criminal wrong-doing in relation to the vote, which the company claims it won by a slim margin. Deutsche Bank said it was cooperating in the civil litigation between HP and Walter Hewlett, as well as all government inquiries.
But the bank declined to say whether it had received any subpoenas or requests for information from federal agencies.
Mr Hewlett's lawsuit is set to go to trial next week, while preliminary results are expected to be released this week.
HP reiterated on Monday that it never acted improperly and that it has had "long-standing relationships with Deutsche Bank." The company also said it remained optimistic it could close the merger on its current schedule, which HP has previously said was late April or early May.
Word of the federal investigations came less than one week after a leaked voice mail message revelealed that Carly Fiorina, the company's chief executive, said HP might have to take "extraordinary" last minute action to persuade Deutsche Bank and Northern Trust to back the deal. |
