Baby step toward HP merger resolution
Compaq Computer took another baby step toward resolving its controversial proposed merger with rival Hewlett-Packard, setting a "record" date under which shareholders will be allowed to vote for or against the $20 billion-plus deal.
In a statement, Compaq said that shareholders of record as of Jan. 28 will be entitled to vote on the proposed HP merger. No actual voting date has been set, either for Compaq shareholders to vote yay or nay or for HP shareholders.
Compaq's shareholder vote is not expected to be an obstacle toward the proposed merger; the company's entire board of directors is supporting the deal. HP shareholders are being urged, separately, to vote against the deal by HP director Walter Hewlett and members of the Packard family, who say they think the deal isn't beneficial to HP.
HP has not yet set a "record" date for its shareholders.
In stock market trading on Jan. 17, shares of Compaq increased by 70 cents to $11.80. Shares of HP also rose, by $1.11 per share, to $23.53.