Judge Says He'll Rule This Week On HP Motion To Dismiss Hewlett Suit

The judge issued his statement after hearing three hours of oral arguments from both sides Sunday morning in Wilmington, Del.

After the hearing, Hewlett said in a statement, "We are grateful that the Court took up this issue on such short notice, and we await the Court's ruling. In the meantime, discovery on the complaint is ongoing."

HP said in a statement, "HP is pleased that the chancellor listened carefully to our arguments and we look forward to his decision, which is expected soon. We continue to believe the allegations are without merit and we remain confident that we will prevail."

The judge reaffirmed an April 23 start date for the trial, assuming that he rules against HP in its effort to dismiss the suit.

Hewlett filed suit on March 28, alleging that HP management coerced Deutsche Bank on the morning of March 19, into switching in support of the merger as many as 17 million votes it had previously voted against the merger. Hewlett further charged in his suit that HP closed a new multi-billion dollar credit facility with Deutsche Bank on March 15. Hewlett said in his suit that HP management let it be known to the bank that if it did not switch its votes to favor the proposed merger, "its future dealings with HP would be jeopardized."

HP denies all charges and expects the merger to close in late April or early May once the votes are certified. On Sunday, HP asserted in its statement, "Our belief is that the proper result in this case is to allow the independent inspectors of election to complete the tally of the shares voted, and to certify the result. Plaintiffs' desire to block the merger is not a basis for overturning the vote, and we believe plaintiffs' false and insulting allegations of wrongdoing by HP are insufficient as a matter of law."