Walter Hewlett suit to throw out HP/Compaq merger voted dismissed - UPDATE
WILMINGTON, DE, Apr 30, 2002 (AFX-Asia via COMTEX) -- A judge Tuesday dismissed a suit contesting the Hewlett-Packard Co shareholder vote of March 19, lifting a potential obstacle to its controversial merger with Compaq Computer.
Judge William Chandler dismissed the suit brought by Hewlett-Packard family heir Walter Hewlett, who had claimed the vote was tainted by misrepresentations by the Palo Alto, California, company and threats or promises made to a big institutional investor, Deutsche Bank.
The evidence presented "failed to prove that HP disseminated materially false information about its integration efforts or about the financial data provided to its shareholders," the judge wrote in a 43-page decision.
"In addition, I conclude that plaintiffs have failed to prove that HP management improperly enticed or coerced Deutsche Bank into voting in favor or the merger."
Although the ruling may be appealed, the decision likely clears a major obstacle to the merger, which was approved by company shareholders by a narrow margin of 51.4 percent, based on a preliminary count.
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