HP files merger plan with EU regulators

SAN FRANCISCO: Printer and computer maker Hewlett-Packard Co. has officially
informed European regulators of its plans to acquire Compaq Computer Corp, HP
said on Friday, starting the last major review of anti-trust statutes.

US regulators already are considering whether the deal, which would be the
largest ever in the computer industry, would present competitive problems by
joining two such major players, while Canada approved the deal on Thursday.

HP said in a statement filed with US regulators that it had filed with the
European Union on Thursday.

"We expect action on the (European) filing, including a determination of
whether additional investigation will be required, in the next 4 to 6
weeks," Hewlett-Packard said. Many investors have opposed the $22.5 billion
deal, and some analysts have said regulators may balk at allowing HP and Compaq,
the two largest sellers of personal computers to retail US consumers, to join
forces.

HP said it already had held "constructive" informal talks with
European anti-trust officials. "We continue to be confident that we will
gain regulatory approval for the merger in the United States and in
Europe," Hewlett-Packard said. It expects the deal to close in the first
half of 2002.

(C) Reuters Limited.