NEW YORK: Walter Hewlett, the son of Hewlett-Packard co-founder William
Hewlett, hired proxy solicitation firm MacKenzie Partners, possibly signaling
the start of a proxy fight between the Hewlett family and the company over its
$20.34 billion takeover of Compaq Computer Corp.
Hewlett has not decided if he will solicit proxies against the deal, a
spokeswoman said Sunday, but hired the firm to "preserve his options."
Last week Hewlett said the family's trust, which owns about a five per cent
stake in HP, would vote against the transaction -- a severe blow to the already
battered deal. The David and Lucille Packard Foundation, which owns another 10
per cent of HP, said it will decide whether to support the deal after HP reports
earnings later this week.
Shares of Hewlett Packard Co. closed up 3.49 percent on Friday at $18.99,
Compaq closed down 3.25 per cent at $7.73 per share. The deal has lost about
$4.5 billion of its original value. On Friday, HP said it would delay its
December analyst meeting until early next year, adding that it made the decision
to do so before family members came out against the deal.
Separately, a regulatory filing on Friday disclosed that Enron Corp. chairman
and chief executive Ken Lay, who sits on the board of Compaq, sold about $1.2
million in Compaq shares last month. Enron's stock and credit rating plunged
after some the company's off-the-balance-sheet deals were brought to light. The
company announced Friday it agreed to be acquired by Dynegy Inc.
(C) Reuters Limited.