HP blasted for demanding Hewlett present a plan

Even large companies lose their perspective when they get embroiled in proxy
shareholder battles. And this week mighty Hewlett-Packard and its embattled CEO
Carly Fiorina showed how the stress of the fight over the merger with Compaq has
clouded their vision.

Fiorina and Hewlett-Packard's board of directors this week attacked the
credential of HP director Walter Hewlett, eldest son of company co-founder Bill
Hewlett, saying Hewlett is "a man without a plan," as he has failed to
present an alternative plan for HP's future should the merger be voted down, as
Hewlett is advocating.

Fiorina insisted that it is important for Hewlett to present HP shareholders
with a plan. But she said the reason he has not come up with any is because he
lacks the credential and skills to manage the company. "The problem isn't
just that he is saying 'no' to the merger. He's giving us nothing to say 'yes'
to," Fiorina said. "If Walter Hewlett has his way, we believe this
company and your investment will be damages. Clearly there is too much at stake
for our share holders to let him prevail," Fiorina wrote in a letter to HP
shareholders.

HP's demand for a plan drew immediate criticism across the Silicon Valley
financial sector. The CFO of one Silicon Valley company who is on the board of
directors of a number of high-tech companies commented the HP's request was
completely out of line. "Give me a break. It is not Hewlett's job as a
director to devise a strategy for the company. His job is to evaluate the plans
presented by management and evaluate those plans against the best interests of
shareholders. He has a right to oppose a merger if he thinks it will not serve
the shareholders. This strikes me as a childish response."

Andrew Neil, an analyst with the Bear Stearns brokerage concurred. "HP's
strategy for attacking Hewlett as plan-less is just absurd. It is like telling
people not to take drugs and then being asked to detail an alternative."

"HP is trying to cloud the issue. It is not his job to come out with a
comprehensive strategy," added David Katz who's investment firm owns
603,000 HP shares.