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

To: PCSS who wrote (96755)	4/2/2002 4:01:39 PM
From: Elwood P. Dowd	Respond to of 97611

HP Asks Judge to Dismiss Lawsuit By MATTHEW FORDAHL AP Technology Writer Hewlett-Packard Asks Judge to Dismiss Lawsuit Challenging Company's Pending Merger SAN JOSE, Calif. (AP) -- Hewlett-Packard Co. has asked a judge to dismiss dissident board member Walter Hewlett's lawsuit, which seeks to halt the company's pending $19 billion merger with Compaq Computer Corp. (NYSE:CPQ - news) on grounds HP improperly enticed a big investor to back the deal. The motion, filed Monday in Delaware Chancery Court, argues that even if Hewlett's charges were true, they would not provide a basis for court intervention, said HP spokeswoman Rebeca Robboy. "This is the first step of what we have said would be a very vigorous defense," she said Tuesday. In the suit filed in Delaware last week, Hewlett alleges the investment arm of Deutsche Bank switched its vote at the last minute after HP threatened to take away future business. The son of co-founder William Hewlett also said HP misled investors about the progress of plans to integrate with Compaq, and that HP executives lied about their ability to achieve the deal's financial targets without exceeding their prediction of 15,000 job cuts. The suit, which HP has called groundless, seeks to invalidate last month's vote by HP shareholders and declare the merger defeated or order a new election. The official count is continuing in Delaware and could take several more weeks to complete. But HP chief executive Carly Fiorina declared victory by a small but sufficient margin shortly after the March 19 vote. Hewlett has described the results as too close to call. A Hewlett spokesman did not immediately return phone calls seeking comment on the motion to dismiss the suit. On Monday, the company's board announced it was not nominating Hewlett for re-election because he had stunned executives with the suit as talks were continuing over his role at the company. Shares of Hewlett-Packard fell 32 cents at $17.58 in afternoon trading on the New York Stock Exchange, while shares of Compaq slipped 10 cents to $10.32. ------ On the Net: HP: hp.com Compaq: compaq.com Hewlett's opposition site: votenohpcompaq.com