Intel Lines Up in Favor of HP-Compaq Merger

Opponents of the merger argue that it would cause HP to lose direction and market share in its core businesses as it struggles to integrate two vastly different corporate cultures.

With the March 19th proxy vote only days away, more Hewlett-Packard (HP) institutional and corporate investors have indicated how they will vote on the hardware maker's vehemently contested merger with rival Compaq.

Chip giant Intel indicated Thursday that it will vote its 58,836 shares in favor of the deal. The company's vote is essentially symbolic, however, as it does not directly control another block of 525,440 shares owned by Intel employees.

In addition, Banc One Investment Advisors indicated Thursday that it will support the merger. According to published records, the group owned 0.26 percent of HP at the end of 2001.

Three of the largest corporate investors outside of the Hewlett and Packard families already have said they will vote for the merger. Putnam Investments, which controls 2.51 percent of HP's shares through its funds, joined Barclays Global Investors and Alliance Capital Thursday in the pro-HP camp.

News source: NewsFactor - Intel Lines Up in Favor of HP-Compaq Merger

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