Hewlett Packard has issued a formal response to Walter Hewlett, board member and son of one of the company’s co-founders who has been opposing HP’s proposed takeover of Compaq Computer. The response was in the form of a 50 page position paper sent to shareholders to try and win their support for the deal.
The company says that Walter Hewlett’s opposition to the merger ‘is based on a static and narrow view of HP and the industry, selectively ignores the synergies of this transaction, relies on faulty financial assumptions and analyses, and offers no alternatives to address HP's challenges and opportunities’.
HP says the merger would be accretive to its earnings in fiscal 2003, the first full year after the transaction is completed.
20-Dec-2001
