HP-Compaq: ISS says 'yes'

NEWS The controversial merger of Hewlett Packard and Compaq was given a massive boost yesterday in the US when Institutional Shareholder Services gave the deal its blessing. The advisory group said it recommends HP shareholders vote in favour of the deal - representing a severe blow to the efforts of Walter Hewlett who is trying to scupper the union of the two computing giants. Both sides of the deal had held talks with ISS, trying to sway the influential group to take up their respective causes. The decision marks a key milestone in the ongoing discussions surrounding the deal and threatens to take it right down to the wire. Before the ISS decision Walter Hewlett's 'no' vote campaign appeared to be gathering momentum and while it still doesn't indicate how the eventual vote will go it will probably serve to refresh the interest in a merger which has looked at times like becoming a rather tiresome saga.