FTC Clears Hewlett-Packard Purchase of Compaq

Printer-friendly version Email this CRN article

Hewlett-Packard won permission on Wednesday from antitrust enforcers to acquire rival Compaq Computer as the Federal Trade Commission closed its review of the combination.

The approval comes a day after the deal won a key endorsement from an influential investor advisory firm, which backed the proposal for computer and printing giant Hewlett-Packard's purchase of the No. 2 U.S. computer maker Compaq.

The deal now awaits votes by shareholders of the two companies which are slated for March 19 and March 20. The families of the Hewlett-Packard founders have been lobbying against the combination.

"Completion of the FTC review marks a major milestone in the approval process, and we are now focused on winning the shareowner vote," Hewlett-Packard CEO Carly Fiorina said in a statement.

Shares of Palo Alto, Calif.-based Hewlett-Packard closed down 41 cents, to $20.18, while shares of Houston-based Compaq closed up 40 cents, to $10.98, on the New York Stock Exchange.

Copyright 2002 Reuters Limited. All rights reserved.

Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Reuters shall be not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Printer-friendly version Email this CRN article