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Hewletts against Compaq
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November 6, 2001: 2:39 p.m. ET
Hewlett relatives, foundation and trust oppose $18.4B Compaq merger.
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NEW YORK (CNNmoney) - The children of William Hewlett, co-founder of Hewlett-Packard Co., as well as the revocable trust and the foundation in the family's name, have agreed to vote against HP's $18.4 billion takeover of Compaq Computer Corp.
Walter Hewlett, along with his sisters Eleanor Hewlett Gimon and Mary Hewlett Jaffe, will vote against the merger if it is presented to shareholders, a spokesman said. The family members, the trust and the foundation own about 5 percent, or 100 million shares in HP.
"After careful deliberation, consultation with my financial advisor and consideration of developments since the announcement of the merger, I have decided to vote against the transaction," Walter Hewlett, who is on HP's board of directors, said in a statement. "I believe that Hewlett-Packard can create greater value for stockholders as a stand-alone company than as a company combined with Compaq."
Shares of Hewlett-Packard (HWP: up $2.92 to $19.81, Research, Estimates) soared more than 14 percent in late afternoon trading Tuesday while Compaq (CPQ: down $0.49 to $8.50, Research, Estimates) fell more than 7 percent.
Hewlett-Packard issued a short statement Tuesday afternoon saying it still supported the Compaq deal.
"While we regret very much the Hewlett family's decision, we are
not surprised," Hewlett-Packard Co. said. "The HP board of directors and HP and Compaq remain fully committed to the merger and expect shareholder approval."
Compaq also remains committed to the merger because the fundamentals have not changed, a company spokesman said.
In September, HP agreed to acquire all of Compaq's outstanding shares. 
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