Fiorina To Employees: 'We Will Fight For What We Believe In'

Hewlett-Packard Compaq Computer

In a letter first sent to employees earlier this week, then filed with the U.S. Securities and Exchange Commission, Fiorina said she has been focused on stopping a "downward spiral" at HP since becoming CEO.

"Every action we have taken since--including the proposed merger with Compaq --has been a carefully calculated effort to reinvigorate HP so we could return to our natural role as a leader, not a follower; so we could fulfill our potential and take advantage of the enormous opportunities in front of us."

HP shareholders vote on March 19 whether to approve or reject the proposed $21 billion merger with rival Compaq. Dissident HP director Walter Hewlett is opposing the merger, saying it is too expensive and would steep the company too deeply in Compaq's "commodity" hardware business.

In a separate filing with the SEC, HP said it expects to incur charges of $450 million to $700 million--if the merger is approved--"for severance or relocation costs related to Compaq employees, costs of vacating some facilities (leased or owned) of Compaq, or other costs associated with exiting activities of Compaq."

On top of that, HP said, it estimates costs of between $450 million and $700 million for similar issues involving HP employees and facilities.

Analysts following the merger controversy say the vote is too close to call and will be nip-and-tuck until the last minute. "With only a few days to go before this pivotal shareowner vote, I simply wanted to tell you that I'm proud of you for standing by HP during this unprecedented time, and for focusing on delivering results," Fiorina said. "We still have a lot of work ahead of us. But we will always fight for what we believe in; we will always fight for what we know is right for this company."