Money Managers Give Fiorina Thumbs Up

Steven Burke

New York

Hewlett Packard Chairman Carly Fiorina's spirited defense of the embattled HP-Compaq merger got a thumbs up from at least a few of several hundred money managers at HP's Analyst Day Wednesday.

"I'm more convinced now than I was before," said John Herndon, vice president of Aquila Management Corp., a New York-based investment company. " I wasn't as clear about what Compaq brought to the table before today.."

id
unit-1659132512259
type
Sponsored post

Herndon said his view of the proposed deal was mixed going into the meeting. "I wanted to see first-hand in my gut, whether this was personal or professional committment [by fiorina. Absolutely, it's both."

Herndon said it was extraordinary how detailed the integration plans are for the two companies.

"It's sort of like a kamikazi dive," he said of the HP-Compaq integration plans. "They are going at it like it's going to go through. They are totally committed."

Another money manager who did not want to be identified said he was inclined to support the deal before the analyst meeting but HP teams argument reinforced that decision. "We have a long-term view. A lot of hte analysis is very short term," he said.

The deal is particularly attractive because of the $2.5 billion in cost reductions the merger would make possible. Both companies have said the combined company can rid itself of redundancies and 15,000 employees.

Another fund manager who also requested anonymity said the economic downturn is helping drive momentum for the merger. "The economy has clearly been shattered," he said.

Fiorina said when asked after the meeting if she felt she had swayed some wall streeters, Fiorina said "I think we have a compelling case if people focus on the substance."