Hewlett down after Walter Hewlett concedes defeat; Compaq higher
NEW YORK, May 01, 2002 (AFX-UK via COMTEX) -- Shares of Hewlett-Packard Corp were lower in early trade after Walter Hewlett, heir to one of the founders of the company, announced he will no longer oppose its planned merger with Compaq Corp, dealers said.
Compaq got a lift from the news, after yesterday posting large gains in off-exchange trade.
At 10.02 am HP was down 45 cents, or 2.6 pct, at 16.65 usd, and Compaq up 31 cents, or 3.1 pct higher, at 10.46 usd, as the technology sector overall was lower with the Nasdaq composite down 22.10 at 1,666.13.
The DJIA was up 15.36 at 9,930.59.
Late yesterday Hewlett made his announcement after a Delaware Chancery Court Judge William Chandler dismissed a suit brought by Hewlett seeking to block the merger.
In his dismissed lawsuit, Hewlett maintained that the company's March 19 shareholder vote was tainted by misrepresentations by HP's management and threats or promises made to institutional investor Deutsche Bank AF.
Industry watchers said now that Hewlett's objections are out of the way the merger could close as early as next week.
law/djp
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