More doubts on Compaq-HP merger
Carly and Mikey have their work cut out...
The Institutional Shareholder Services (ISS), which advises big institutional investors, has come out against the Compaq/HP merger.
Richard Ferlauto, vice president of ISS, said: "It's a tough deal to support right now but we're taking a wait-and-see attitude because we are not sure we've seen the final terms of the deal." the Financial Times reports.
The company specialises in proxy fights - when big investors gang up to oppose decision from the board.
Walter Hewlett, son of HP co-founder Bill Hewlett, filed an addition to his memorandum opposing the deal. He now claims the deal will slash 34 per cent off HP's earnings for 2002. HP executives estimate the shortfall at 9.1 per cent.
The Packard Foundation, controlled by the daughters of co-founder David Packard, is meeting tomorrow to makes its decision on the merger. The Packard Foundation owns over 10 per cent of HP.
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