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Compaq-HP: excommunication from families


Compaq-HP: excommunication from families

New York (USA) – They do not have the majority of the shares, on the contrary, but the heirs of the two founders of Hewlett-Packard do not want the announced merger of the company with the giant Compaq and promise battle.

In the past few hours, David Packard’s son has in fact decided to join the heirs of William R. Hewlett in opposing the huge operation, destined to create a real “monster” among the giants of international hi-tech.

David Packard said he was in perfect harmony with William’s son Walter Hewlett, who said: “I believe HP can mean more shareholder value as a standalone company rather than a combined enterprise with Compaq.” William, a long-time HP executive, had specified along with the other Hewlett heirs that “the acquisition of Compaq would increase HP’s problems in the low-end server business, an area that has always been less profitable for HP than the high- end. Compaq’s services business, which focuses more on support than outsourcing and consulting, is not the kind of business that HP should cultivate. ”

The position of Hewlett’s heirs displaces 5 percent of the shares against the choices made so far by the company’s management. David Packard controls a stake that, added to that of the other heirs of his family, comes to more than 10 percent. David, however, specified that he had spoken for himself and not for his sister Susan Packard Orr or for the “David and Lucile Packard Foundation”. Some are expecting a declaration of intent from the other shareholders of the family within a few days because according to the heirs of the founders of HP, the operation would lead to uncertainties that will cost the company dearly.

In a note, however, HP wanted to emphasize that together with Compaq “remains totally focused on the merger”. Within a few days, the giant will release an official statement that will analyze the reasons for the merger on an industrial level in an attempt to convince skeptics. But, of course, the position taken by the two influential families risks causing many problems for the management led by Carly Fiorina, chairman and CEO of the company.