|
Fiorina, along with most of the HP board, said that they believed that a sufficient number of shareowners had approved HP's merger with Compaq Computer Corporation, but admitted that an official victory was still weeks away as independent firm, IVS Associates, tallies the votes.
Meanwhile, dissident board member Walter Hewlett, son of one of HP's founders, refused to concede defeat. Analysts have in fact said the pro-acquisition vote seems to have won out, with a slim margin of between 0.5 percent and three percent, though few are willing to name a decisive victor in the contest. There are 1.7 billion shares outstanding in HP.
Still, Fiorina appeared optimistic, despite being booed at one point during the special meeting in Cupertino, California. "We are gratified that HP shareowners recognise the compelling strategic and economic benefits of the merger and that a decisive majority of shares not affiliated with the Hewlett and Packard families and foundations appear to have been voted in favour of this transaction," said Fiorina in a statement.
She went on to say that the company's board remains committed to building "sustainable shareowner value" and that the vote, which she described as an endorsement, was an "historic opportunity to lead in a rapidly evolving industry."
Fiorina also thanked supporters and employees and said the debate between herself and Hewlett raised important issues and prepared the company more for its integration with Compaq. "It's now time for all of us -- those who supported the merger and those who opposed it -- to pull together for the benefit of the company," Fiorina said.
The USD20 billion plan, which if approved will include 15,000 job cuts, will almost double HP's annual revenues to an estimated USD80 billion. It will also broaden and expand the company's entire line of PCs, servers and printers and will create a second computer industry behemoth to rival the likes of IBM.
But since the acquisition was first announced, in September 2001, William Hewlett has had reservations about the value of the deal and over the last four months has continually said that the merger would dilute HP's lucrative printing business. For his efforts, Hewlett received a standing ovation from shareholders when he entered the meeting on Tuesday.
HP's stock has dropped around 19 percent since the deal was announced, while Compaq has slumped around 10 percent. On Tuesday, Compaq gained USD0.78 to USD11.14 while HP fell USD0.45 to USD18.80.
Just what impact the potential acquisition could have on the two companies' Irish workers remain to be seen, although HP has indicated that jobs are bound to be lost here. Between them, HP and Compaq employ around 4,000 in Ireland and according to the Irish Times on Wednesday, jobs are expected to go in Ireland whether the merger is approved or not.
The paper says certain functions in the Republic, such as administration, management and finance, would be vulnerable should the merger go ahead, quoting Barry Dixon, technology analyst with Davy's Stockbrokers.
Compaq shareholders are set to vote on the acquisition on Wednesday.
|
