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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (94101)	12/10/2001 6:12:35 PM
From: hlpinout	Read Replies (3) \| Respond to of 97611

December 10, 2001 16:20 Hewlett-Packard Foundation Votes against Compaq Merger Plan By Graeme Beaton, Financial Mail on Sunday, London Dec. 9--NEW YORK--The most powerful woman in American business is fighting for her job after her biggest shareholders delivered a stinging rebuke this weekend to her most ambitious corporate move. Carly Fiorina, chief executive of technology giant Hewlett-Packard, said she would try to push through a $23 billion merger with Compaq Computer Corporation, despite the protests of major shareholders and employees. The latest blow to Fiorina's strategy – and her job security – came from the heirs of company co-founder David Packard. They decided to vote against the link-up with Compaq, whose business has been hammered by intense competition from rival PC manufacturers. The David and Lucile Packard Foundation said it had "preliminarily" determined that the "best interests of the foundation would be better served by Hewlett-Packard not proceeding with the proposed transaction." The foundation, which controls 11 per cent of the company, was seen as the deciding vote in the wrangle. Company watchers had predicted that Fiorina, 46, would either leave the company of her own accord or be forced out if the vote went against her. The Hewlett family, which controls 6.6 per cent of the world's biggest computer printer maker, have already said that they would oppose the deal. Fiorina, in a joint statement with Compaq executives released late on Friday, said they were "disappointed" with the foundation's decision. A measure of shareholders" distaste for the deal came after the announcement to oppose the merger. Hewlett-Packard shares leapt seven per cent in late New York trading. Fiorina, who came to the job after being named the most powerful woman by American business magazines, was a star at telecom equipment maker Lucent. But Hewlett-Packard's business has fallen away under her leadership and the company's shares have dropped 50 per cent since she took over in mid-1999. -----