Will the HP and Compaq merger be prevented?
Walter Hewlett, the son of the founder of Hewlett-Packard, protests against the future merger of Compaq and HP. Together with the former CFO Edwin van Bronkhorst, he has submitted an application to the American stock exchange regulator.
Try the application the two get the voting rights of the other shareholders. If approved, they could ask shareholders to give them voting rights. He and the family own 18 percent of the shares. Together with other shareholders, those in favor of the merger could be outvoted. According to Walter Hewlett, the new company would primarily make profits in the PC area. In the low-end market, however, one cannot keep up with the competitor Dell. The corporations IBM and Sun would also be far too strong in the high-end segment. If they fail with their plan, the merger will probably take place in the middle of next year after approval by the cartel office.