HP Files Motion To Dismiss Hewlett Suit

Hewlett-Packard

An HP spokeswoman said HP believes Hewlett's challenge to the proxy vote has no legal grounds. In a statement Monday, the HP board said, "The allegations that HP bought votes from Deutsche Bank or improperly coerced it to change its votes are false. In addition, Walter Hewlett's allegations that HP shareowners were misinformed about integration are without basis. There is more information about this merger in full view of shareowners than for any other merger in corporate history."

On Monday, the HP board voted to not renominate Hewlett to the HP board.

Hewlett filed suit last week alleging that HP management coerced Deutsche Bank on the morning of March 19 into switching as many as 17 million votes to support of the merger.

Hewlett further charged in his suit that HP closed a new multibillion-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."

The HP spokeswoman said the company does not expect the suit to delay the merger, which it now expects to complete by late April or early May.