PALO ALTO, Calif.—Hewlett-Packard Co. director Walter Hewlett filed a lawsuit Thursday in Delaware Chancery Court against HP claiming that the company improperly garnered shareholder votes in favor of a merger with Compaq Computer Corp.
Hewlett blamed HP for coercing Deutsche Bank to comply with the merger by threatening to take future business away from the bank if it did not. Hewlett further accused HP of misleading investors with exaggerated financial predictions and underestimated job cuts following the proposed merger. He asked the Court to invalidate votes cast by shareholders in favor of the merger and declare the merger defeated or to schedule a new election.
“We believe this suit is completely without merit and intend to vigorously defend it,” read a statement issued by HP denouncing Hewlett’s legal move. “We find it regrettable that Mr. Hewlett has chosen to resort to baseless claims without regard to the impact of his false accusations on HP’s business reputation and employees.” The company added it continues to prepare for the merger with Compaq while it looks forward to official certification of the vote results, which is expected within weeks.
