PALO ALTO, Calif.—Hewlett-Packard Co.’s board of directors said Tuesday it believes it has received a sufficient number of votes to approve its recently proposed merger with Compaq Computer Corp., but the official vote has not yet been tallied.
“We look forward to Compaq’s shareowner vote … and the official certification, and we expect to complete the merger soon after the vote is certified—allowing us to quickly begin execution of the comprehensive integration plans we have been preparing for many months,” Carly Fiorina, HP’s chairman and chief executive officer, said confidently following the HP shareholder vote on Tuesday. “Today’s vote is the beginning of the process of building an even greater HP. We have much work to do, but we are energized and confident as we move to capitalize on the potential of this combination.”
Compaq’s shareholders are scheduled to vote Wednesday.
According to the joint proxy statement filed with the SEC on February 5, 2002, the companies believe the merger will: enhance their competitive position in several businesses; strengthen their sales force; improve customer, partner and employee relationships; generate an annual cost savings of approximately $2.5 billion—increasing the value of each HP share $5 to $9; and improve operating margins.
HP said it expects official results within the next few weeks, following verification of each vote by independent proxy counters and allowing for either side to challenge ballots.
Following the vote, shares of HP fell 45 cents, or 2.34 percent, to close at $18.80 while Compaq shares gained 78 cents, or 7.53 percent, to close at $11.14.
