Hewlett, the most vocal opponent of the deal, accused HP CEO
Carly Fiorina of “buying” shareholder votes and of misleading
investors by exaggerating the benefits of the $18 billion deal. He
said that Fiorina “improperly coerced and enticed” Deutsche Bank
into voting in favour of the deal by threatening to withhold future
investment banking business.
Chancellor William Chandler III of the Delaware Chancery Court
disagreed. He wrote: “Nothing in the record indicates that HP lied
to or deliberately misled” shareholders.
Hewlett has waived his automatic right to appeal Chandler’s
decision to the Delaware Supreme Court. More than 75% of appeals to
the Delaware Supreme Court are unsuccessful, according to a comment
by one of its judges quoted by Dow Jones Newswires. In fact, in the
last financial year, the higher court reversed only two of the
twenty-two decisions appealed from the lower court.
Walter Hewlett has also decided to withdraw from challenging the
vote count which, on an unofficial result, suggests the deal will
go ahead. He said yesterday:
"We have decided to discontinue the review
and challenge period of the preliminary vote count and permit the
vote to be certified. I have disagreed with the Board over the
merits of acquiring Compaq, however I have always been dedicated to
enhancing value for HP's stockholders. I will therefore now do
everything possible to support the successful implementation of
HP's acquisition of Compaq and encourage others who have shared my
views in the past several months to do the same."
