DECEMBER 8, 2001
Compaq merger with Hewlett-Packard unlikely
WILLIAMS's title sponsor Compaq is in the process of being swallowed up by rival Hewlett-Packard but the deal has been hit a major snag as HP's chief shareholder The David and Lucile Packard Foundation, has announced that it is opposed to the deal. However the management of the company says it is going ahead. There is also opposition to the deal from the Hewlett Family. The stage is thus set for a corporate battle which could end up with the HP chief executive Carly Fiorina losing her job if the other shareholders in the business do not support her.
Compaq shares dropped 12% when the news was announced as the company has been struggling in recent months and Wall Street seems to have little confidence that Compaq can be profitable on its own in a very competitive market.