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

To: hlpinout who wrote (94203)	12/12/2001 6:41:30 PM
From: hlpinout	Read Replies (2) \| Respond to of 97611

HP Integration Chief Vows Compaq Deal Won't Fail By Craig Zarley, CRN Palo Alto, Calif. 6:12 PM EST Wed., Dec. 12, 2001 Hewlett-Packard's point man in the Compaq merger integration strategy says the merger is on track despite the Packard and Hewlett families' opposition to the deal. "We are in the very early stage [of the merger process," said Webb McKinney, president of HP's Business Customer Organization and lead of the Compaq integration team. McKinney made his comments during a conference call with reports on Wednesday. "Eight-two percent of [HP's] shareholders have not made any preliminary announcements of how they might vote, " he said. McKinney was referring to the David and Lucile Packard Foundation, which said it would vote its more than 10 percent HP stake against the deal. The foundation's decision reached last Friday follows a decision by HP board member Walter Hewlett to vote the more than 7 percent stake he controls against the deal. McKinney and other HP executives including Chairman and CEO Carly Fiorina have stepped up lobbying efforts in support of the merger following the thumbs down votes from the Packard and Hewlett families. McKinney said HP "has no plan B" in the event the merger fails. 'We're not even thinking about calling this off," he said. He said the final proxy statement won't be filed until at least January and the earliest a shareholder vote could come would be February. McKinney also said that HP is constantly surveying employees to gauge their support of the deal and the majority continue to be in favor of the merger.

To: hlpinout who wrote (94203)	12/12/2001 6:49:03 PM
From: hlpinout	Read Replies (1) \| Respond to of 97611

Compaq's Perkins Says No New Hewlett-Packard Deal (Update1) By Peter J. Brennan Houston, Dec. 12 (Bloomberg) -- Compaq Computer Corp. board member Thomas Perkins said Hewlett-Packard Co.'s planned purchase of Compaq will not be renegotiated to satisfy shareholders who oppose it. ``There is no talk or intention to renegotiate the deal,'' Perkins, a founder of venture-capital firm Kleiner Perkins Caufield & Byers, said in an interview. ``It's a good deal and it's solid.'' He said Compaq's directors met twice over the past weekend to discuss the reasons why David and Lucile Packard Foundation, Hewlett-Packard's largest shareholder, said on Friday it would vote against the proposed $23.6 billion acquisition. Compaq's board is also gathering tomorrow for a regularly scheduled meeting and not because of emergency plans, he said. Shares of Houston-based Compaq rose 30 cents to $9.79. The shares have fallen 21 percent since the acquisition was announced Sept. 3. Shares of Palo Alto, California-based Hewlett-Packard fell 18 cents to $21.81 and have fallen 6 percent since Sept. 3. HP's Board The Packard Foundation's decision means all the children of the founders of Hewlett Packard now oppose the deal. They and their foundations control 18 percent of the shares and their decision could sway other institutional investors to vote against the acquisition. Hewlett-Packard Director Richard Hackborn said earlier the company's board of directors and management may resign if shareholders don't approve the purchase of Compaq. ``If the merger gets turned down by shareholders, they will have to get a board and a management to fix the PC business and these other problems,'' Hackborn told the New York Times in an article today. ``I don't see how a shareholder cannot take that into serious consideration,'' said Perkins. Even if terms of the deal were renegotiated, that wouldn't change the Packard Foundation's vote, said Perkins, one of the co- founders of Compaq. The board discussed the background of the Packard Foundation's decision on Sunday, he said. ``This is a struggle between the families and the board,'' he said. ``This doesn't have much to do with Compaq.'' The Packard Foundation doesn't expect to consider any renegotiated deal, said Chief Executive Richard Schlosberg.