Finally ... :^)
Deutsche Bank Says Walter Hewlett Should Pay Its Legal Costs
By Phil Milford
Wilmington, Delaware, April 30 (Bloomberg) -- Deutsche Bank AG said Walter Hewlett should pay some legal costs it incurred in the ex-Hewlett-Packard Co. director's suit to stop the computer maker's $18.7 billion plan to buy Compaq Computer Corp.
Walter Hewlett, ousted last week by the board, said during a three-day trial last week in Delaware Chancery Court that shareholders' approval of the purchase should be thrown out because Hewlett-Packard issued misleading information and coerced Deutsche Bank to switch 17 million votes to favor the deal.
Judge William Chandler III could release his opinion on the fate of the buyout this week.
In a motion made public today Deutsche Bank asked Chandler to quash Walter Hewlett's subpoenas for more information -- since the trial is over -- and says it is ``entitled to be compensated at a reasonable hourly rate for its employees' time'' if the subpoenas are enforced. The bank said it's already produced 12,000 pages of documents.
The bank, not named as a party to the lawsuit, also asks Chandler to order Walter Hewlett to pay some legal costs because he ``failed to take any steps -- reasonable or otherwise -- to avoid imposing undue burden or expense'' on the bank. No figure was given in the motion.
Todd Glass, a spokesman for Walter Hewlett wouldn't immediately comment on the bank's request.
U.S. shares of Frankfurt-based Deutsche Bank rose $2.44 to $66.23 in afternoon trading.
Hewlett-Packard has said it plans to complete the acquisition of Compaq next Tuesday. Hewlett-Packard shareholders approved the Compaq acquisition by a margin of 2.8 percent or 45 million votes.
Deutsche Bank could incur expenses in another lawsuit filed in the same court on Friday. In that case, a Hewlett-Packard shareholder charged company executives with mismanagement over the buyout and also sued Deutsche Bank for ``aiding and abetting'' them in violating duties to Hewlett-Packard shareholders.
The suit accuses the bank of ``acceding to threats that Deutsche Bank would lose substantial future business from H-P should Deutsche Bank not change its votes.''
The bank has said it wasn't coerced and made a reasonable business decision in the interests of clients.
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