WILMINGTON, DE, Apr 24, 2002 (AFX-Asia via COMTEX) -- Hewlett-Packard Inc chief executive Carly Fiorina has rejected accusations that in February and March, she knew HP's public projections for revenues from its proposed merger with Compaq Computer Corp were overblown.
She also refused to provide revenues and cost-savings estimates.
Fiorina returned to the witness stand today for continuing questioning in a case contesting the company's merger with Compaq. She was questioned closely by lawyer Stephen Neal, who represents HP heir Walter Hewlett, who is bitterly opposed to the merger.
Hewlett contends HP oversold the merger to shareholders, and is asking the Delaware court to vacate a shareholder vote approving the deal.
"You are accusing a CEO of a publicly traded company of lying," said Fiorina to Neal's probes.
On questions about projections, Fiorina said: "You are asking me to do something ... that it is not timely for me to do."
"I will not sit here and make a financial forecast for the second half of this year when there is a system of doing so. I have not given the street a target for 2003 and I do not intend to do so."
Robert Wayman, HP's chief financial officer, took the stand after Fiorina. He was questioned by Neal about internal company emails from other HP financial officers that were critical of the merger.
Stated one email: "We remain well off (the targets)." Another stated: "It is ugly. Both companies are deteriorating in this merger."
Wayman said he believes the shortfall was due to a softening economy.
Wayman was also questioned about HP's relationship with Deutchse Bank, an institutional investor that voted its 24 mln shares of HP stock for the merger. Hewlett contends HP used undue influence to win those votes.
Wayman admitted on the stand that Deutsche would receive a 1 mln usd "success fee" for getting shareholders to vote for the merger.
Hewlett lawyer Neal told the court yesterday there was "circumstantial but powerful" evidence that HP used those incentives to sway Deutsche and other large shareholders to ratify the merger.
The case is currently scheduled to conclude tomorrow.
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