RealTime IT News

Compaq Follows HP Vote For Merger

Unlike their HP counterparts, shareholders with Compaq Computer Corp. had no problem making up their minds in a proposed $22-billion merger.

A special meeting at the Houston-based company resulted in a 9 to 1 pro-vote to combine the company with Hewlett-Packard .

After only 45 minutes and a sprinkling of debate, shareholders agreed to the proposal that brings together the second- and third-largest computer makers in the nation (behind Dell) . Compaq CEO Michael Capellas predicted a relatively easy approval.

"I think if I had to do it all over again, I would really think about the space in which I was going to make the change," said Capellas, who will become HP's president if the merger finalizes. "We live in unparalleled times and any fortune 500 company has to understand its external environment. Sometimes we forget to look at the environment in which we work.

Capellas reaffirmed HP CEO Carly Fiorina's remarks that the company would "hit the ground running" clearly identifying what the combined company's brand strategy and product lines would look like. However, he was a little cautious when it came to where the projected 15,000 job cuts would be coming from. The job cuts would likely come 6-9 months after the merger is completed.

HP management claimed "slim but sufficient" vote on Tuesday in Cupertino, Calif. Rogue board member Walter Hewlett

Inspectors of Election from IVS Associates now has possession of the votes from both companies. The third-party firm, known for tabulating and certifying proxies will officially count the ballots. A final vote count is not expected to be known for a few weeks.