By Suzanna Kerridge, 7 November 2001 12:41
NEWS HP has said it is not surprised that members of the founding family have decided to vote against the $18.4bn merger with Compaq. Dave Boufford, director of communications for HP EMEA, said that while it was regrettable, the deal will proceed as planned. He said: "HP's S-4 registration statement would be filed with the Securities and Exchange Commission within the next several days and will serve as the basis for thoughtful shareowner evaluation." Bouffard added that the condemnation of the deal by board member and son of co-founder, David W. Hewlett, is not expected to change the fundamentals of the deal. Hewlett spoke out against the merger yesterday claiming it would serve to increase HP's share of the depressed, loss-making PC market, water down the stature of the printing business and alienate customers. However, the trust controlled by Hewlett does not hold a decisive vote as it only amounts to five per cent. At the end of last year Hewlett sold 229 million shares, leaving him with 150 million, according to information from financial analysts First Call. Industry observers claim the Hewlett name will have more sway with fellow shareholders than their five per cent voting power. Carly Fiorina, CEO at HP, has yet to see the reaction from the Packard family who own a 10 per cent stake. The David and Lucile Packard Foundation, which controls that stake, claimed it would carry out an independent analysis of the multi-billion dollar deal.
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1. MARIE FISHEER
I HAVE TRIED CALLING HP CUSTOMER SERVICE AND HP TECH SUPPORT 4 TIMES AND HAVE NOT GOTTEN ANYWHERE. THE CALLS WERE FORWARDED TO SOMEWHERE IN INDIA WHERE THE PERSONS COULDN'T UNDERSTAND ME, NOR COULD I UNDERSTAND THEM. IT IS VERY FRUSTRATING. BEFORE PURCHASING ANOTHER PRODUCT, I WILL ALWAYS RESEARCH WHERE THEIR SUPPORT STAFF IS LOCATED. IF IT IS NOT IN THE US, I WILL NOT PURCHASE IT. WHAT GOOD IS AN ITEM WHEN IT CANNOT BE USED OR SERVICED.