The David and Lucile Packard Foundation confirmed last week that it would vote its shares in the Hewlett-Packard Company against the proposed merger with Compaq Computer Corporation.
“While we continue to understand the strategic considerations being addressed by management, today the board has made a final determination that, on balance, the interests of the foundation would be better served by Hewlett-Packard not proceeding with the proposed transaction,” said foundation chairwoman Susan Packard Orr, following a meeting at the foundation’s headquarters in Los Altos March 12.
Members of the Hewlett family also said they would vote against the merger. In a statement released last week, the family said it was their belief that H-P would hold a greater value for stockholders as a stand alone company than as a company combined with Compaq.
Hewlett-Packard shareholders were scheduled to vote on the Compaq merger Tuesday during a special meeting. Compaq shareholders are scheduled to cast their votes today.
The proposed merger is potentially one of the largest technology deals of all time. If approved, the companies expect to close the transaction in early April, according to a report from Hewlett-Packard.
The Hewlett and Packard families have spoken out against the merger since Carly Fiorina, chairwoman and chief executive officer of H-P, announced plans last year to buy out Compaq Computer for $25 million.
Fiorina said the merger would potentially make HP an $87 billion technology leader and create a significantly improved cost structure for the company and its shareholders.
Although the families do not own enough stock to stop the merger, financial analysts say their position could have persuaded other stockholders to vote against the merger.
Members of the Packard family control about 5 percent, or about 100 million shares, of the Hewlett-Packard Company stock and the Hewlett family controls about 17 percent of the company’s stock.
The David and Lucile Packard Foundation is a private foundation created in 1964 by David Packard, co-founder of Hewlett-Packard Company, and Lucile Salter Packard. The foundation provides grants to non-profit organizations worldwide.
