HP: Hewlett's Suit Is Completely Without Merit

Hewlett-Packard Compaq Computer

"We believe this suit is completely without merit and intend to vigorously defend it," said the company in a prepared statement. "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."

HP has declared victory in the proxy battle, but Hewlett has refused to concede defeat. An official tally is expected in the next several weeks.

The lawsuit filed in Delaware Chancery court raises questions about the process by which HP solicited votes for the approval of the proposed merger, particularly from large institutional stockholders including Deutsche Bank.

Hewlett has requested expedited proceedings in a bid to resolve the matter as soon as possible.

In its statement, HP said it is moving forward to ensure a "a successful integration of our merger with Compaq. We look forward to the receipt of the certified vote result from the HP shareowner meeting, which we expect within a few weeks."

Developments such as Hewlett's lawsuit will not help clear up the uncertainty surrounding the merger, said Don McDowell, vice president of server solutions at Forsythe Solutions Group, a Skokie, Ill.-based Compaq and HP partner.

Customers are sensitive to anything related to the merger, McDowell said. "This is something everyone notices," he said. "It's been battled in public, in the press, in ads."

McDowell hopes the situation is settled quickly so everyone can get back to business. "But then again, it took an awful long time to count the [disputed presidential votes in Florida," he said.