HP and Compaq merger still on
Chief executives at Hewlett Packard and Compaq have told employees by email that they have no intention of giving up on the controversial merger.
HP chief executive Carly Fiorina said that she expects ‘the storm to intensify’ over the company’s bid to buy Compaq, and urged employees to deliver consistent results and stay positive about the merger.
Compaq chief executive Michael Capellas said that the $23bn (Pounds 16bn)deal would help turn Compaq into a strong technology company. However, he also suggested that there are alternatives for the firm.
In his email Capellas reiterated his company’s commitment to the merger, but said: ‘Whether we are part of the new HP or a standalone company, I am confident in our ability to achieve these objectives.
‘The best thing we can do right now is to maintain our positive momentum in the market. That means continuing to focus on meeting and exceeding our goals for the fourth quarter.’
According to filings made to the Securities and Exchange Commissions this week, Fiorina acknowledged the company’s disappointment with Friday’s decision by the David and Lucile Packard Foundation to vote against the merger.
But Fiorina pointed out that the HP families and their foundations control only 18% of HP stock. ‘Rest assured that we do not intend to give up, and that we will continue our efforts to return this company to greatness,’ she said.
Links
Packard son joins Hewletts in merger fight
HP/Compaq merger ‘just the beginning’