HP Lawyers Offer Scathing Closing Argument in Compaq Case

The brief, filed Friday night and released by HP on Saturday, was the equivalent of a closing argument after a three-day trial that ended Thursday in Wilmington, Del.

Hewlett offered no proof HP lied about the chances the Compaq deal could achieve its publicly released financial goals, the attorneys said. He also offered no tangible evidence that HP threatened Deutsche Bank or coerced its investment managers into switching 17 million shares in favor of the deal, the brief said.

"They are pitching the bribery claim as a 'circumstantial' case with the subtlety and intrigue of an Oliver Stone screenplay," the HP attorneys wrote.

"Carly Fiorina's philosophy in connection with this merger has been 'under-promise and over-deliver.'' the brief said, referring to the HP CEO's testimony that the Compaq deal actually should exceed its stated goals. "Plaintiffs' performance in this lawsuit has been to 'over-promise and under-deliver.'"

Attorneys for Hewlett, whose 15-year tenure on the HP board ended Friday, also filed a post-trial brief with the court but had not released copies to reporters by Saturday afternoon.

Hewlett sued HP in Chancery Court in Delaware, where HP is incorporated, in hopes of overturning the March 19 shareholder vote, won by HP 51.4 percent to 48.6 percent, according to an unofficial, preliminary tally.

Judge William B. Chandler III said Thursday he would rule quickly. If Chandler lets the $18.2 billion deal stand and HP's victory in the proxy vote holds up, HP and Compaq Computer are prepared to officially begin working together May 7.

HP's lawyers asked Chandler to rule in the company's favor and also publicly vindicate "the integrity and moral rectitude" of Fiorina and HP CFO Robert Wayman.

"The time has come to force Walter Hewlett and his team to face reality," the HP brief said. "They lost. It is time to stand down and allow these companies to get on with the work of implementing the integration planning."

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