Banc One backs HP management in merger

SAN FRANCISCO: Banc One Investment Advisors said on Thursday it would support

Hewlett-Packard Co's $21 billion plan to buy Compaq Computer Corp., throwing its

0.26 per cent of HP stock behind management in the hotly contested deal.

HP shareholders are due to vote on Tuesday, and analysts say the contest is a

tossup. A spokeswoman said that Banc One would also throw its Compaq shares

behind the deal, which would be the largest computer merger ever and which

management says would serve customers' nearly every need.

Banc One held 5.1 million shares of HP, 0.26 per cent of those outstanding,

and 1.8 million shares of Compaq, about 0.11 per cent of that firm, as of Dec.

31, 2001.

Dissident HP board member Walter Hewlett, who says HP would trade a piece of

its valuable printing franchise for Compaq's low-profit PC business, had

garnered a few allies earlier on Thursday.