Walter Hewlett suffers voter backstabbing

NEWS Walter Hewlett may have to face up to defeat in the HP-Compaq merger vote after it emerged that many of his supporters deserted him at the hustings and voted in favour of the $25bn deal. Yesterday, Carly Fiorina, CEO of HP, pronounced a slim but sufficient margin of victory and Independent Voting Services, the firm responsible for counting the votes, claimed nine out of the 12 largest HP shareholders had voted in favour of the merger. The Hewlett and Packard families, holding an 18 per cent share in the company, have long stated their opposition to the deal, suggesting a number of other shareholders who previously declared their intent to vote 'no' had a change of heart come polling day. Deutsche Asset Management was one such company. It cast its 17 million shares in favour of the deal. Capital Research Management also voted 66 million of its 69 million shares in favour of the merger having previously suggested it was against it. Alliance Capital Management also used its 2.3 per cent share of HP votes to show its support for Fiorina. But it is unclear whether other large shareholders, such as the Banc of America, Brandes Investment Partners and Wells Fargo, continued to support Hewlett with a 'no' vote. Despite these setbacks, Hewlett is remaining optimistic, claiming 55 per cent of registered users and 66 per cent of employees have voted against the deal. In a statement he said: "This vote breaks down to an unprecedented two to one against the HP plans. The Hewletts and Packards collectively have over 18 per cent of HP's stock, a stake worth over $7bn. The rest of the board holds less than three tenths of one per cent."