More Investors To Vote No On HP-Compaq Merger

Hewlett-Packard Compaq Computer

However, top Compaq and HP technology executives said that they will be ready to move ahead under a single set of architectures for each major platform and that the development teams at each company are eager for a merger.

Hewlett, a day after saying HP Chairman and CEO Carly Fiorina wouldn't survive in her job if the merger was shot down, said the two institutional investors joined the CALpers retirement board and others in lining up against the deal.

Meanwhile, Shane Robison, Compaq's CTO, and Dick Lampman, director of HP Labs, spoke in a conference call with reporters about integration plans should the merger pass.

"There is a lot of excitement in the technology community about this merger," Robison said. "Our folks in Compaq research labs have been very anxious to spend more time with people in the HP labs. ... The atmosphere is one of real excitement and real energy about getting together and moving this to the next level."

The two executives spoke to the press in what has become a daily drumbeat of conference calls with investors, analysts and reporters between both supporters and detractors of the proposed $21 billion merger. HP shareholders are slated to vote on whether to approve or reject the deal on March 19; Compaq stockholders vote on March 20.

"I know there has been a lot of controversy about where people are emotionally," Robison said. "My interactions with the HP folks, I've experienced the same [excitement."

Together, the companies have about 600 employees working on integration issues. However, each company has been mum about which HP product lines would survive the merger and which Compaq products would survive.

"Typically, what we've done is selected an entire product architecture as the go-to-market architecture," Robison said.

"The combined capability we're going to have is going to be quite strong," Lampman said.

Meanwhile, Hewlett was also touting a letter he said was written by former HP board member Paul Miller. According to the letter, which Hewlett quoted in his statement, Miller said the deal would be a strategic error for HP.

"I view the Compaq merger as primarily a cost-cutting move which may serve the bottom line well in the short-term but which is not a good long-term strategy," Miller said.