This (abridged) article appeared in The Guardian, an influential news
paper, on Nov.9th.
"Packard scion resists Compaq deal".
David Packard, son of one of the founders, rejected the proposed $21.4bn
merger with Compaq... David, whose family and foundations owns 10% of
the equity, joined forces with the Hewlett family, which has 5%, to
oppose a deal already floundering in the wake of the crisis in the
American technology sector.
Dave .... reportedly denounced the Compaq deal because its rationale was
at least 15000 redundancies when for 50 years the company's goal had
been to provide long term, employment.
He told the Wall Street Journal Online that he had spoken to Walter
Hewlett .... ands supported his decision to oppose the deal....
He said that he could not speak for the David and Lucile Packard
Foundation or his sister Susan Packard Orr who owns the rest of the
family equity and could not say how they would vote.
The founding families opposition further undermines the position of
Ms.Fiorina, one of America's leading CE's, who announced the merger,
then worth $25bn, in early September only to see the fall in technology
shares sharply reduce the value.
Analysts said that if the combined families block of 15% of the shares
voted against the deal Ms Fiorina's days as CE would be numbered. She
has angered investors with poor sales and profits and a series of
botched take-over attempts.
The eight board members, apart from Walter Hewitt came out strongly in
favour of the merger which they backed "enthusiastically" and of Ms.
Fiorina whose leadership they "unequivocally support".
The Compaq board has also voted to pursue the transaction.

Although some of this is not new I think that will be of interest to
the list.

Chris Thompson
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In article <[log in to unmask]>, Wirt Atmar
<[log in to unmask]> writes
>The old HP way is still alive at least in Bill & Dave's children. The
>following is from the November 6th San Jose Mercury News:
>
>=======================================
>
>Packard says he's displeased with the direction of HP
>He doesn't like the new culture
>BY TRACY SEIPEL
>Mercury News
>
>David W. Packard, the only son of Hewlett-Packard co-founder Dave Packard,
>said Tuesday he decided to join Walter Hewlett in opposing HP's proposed
>acquisition of Compaq Computer for more than just financial reasons.
>
>Packard doesn't like the direction the company has taken, and in 1999 --
>before current CEO Carly Fiorina was hired -- made it known when he resigned
>from the HP board after it decided to spin off Agilent Technologies.
>
>He doesn't like the merger -- which he said ``depends on massive employment
>layoffs -- at least 15,000, probably more.''
>
>``I agree with Walter's statement that gave a lot of business reasons this
>merger is a bad deal and I share all of those reasons,'' Packard said.
>
>And he definitely doesn't like the new culture implemented by Fiorina.
>
>``For some time I have been skeptical about management's confidence that it
>can aggressively reinvent HP culture overnight -- a culture that developed
>over many years and was thoroughly tested under all kinds of business
>conditions. . . .'' he told the Mercury News on Tuesday afternoon.
>
>``. . . I am perfectly aware that HP has never guaranteed absolute tenure
>status to its employees; but I also know that Bill and Dave never developed a
>premeditated business strategy that treated HP employees as expendable. This
>new approach seems likely to affect the confidence and loyalty or the
>remaining employees. For over 50 years, one of HP's fundamental corporate
>objectives has been to provide long-term employment for its people.''
>
>Packard also said The Packard Humanities Institute, which he founded and
>which owns more than 25 million HP shares, would not vote its shares to
>support the proposed merger.
>
>He was careful to say that he was not speaking for other Packard family
>members or for the David and Lucile Packard Foundation, chaired by his
>sister, Susan Packard Orr. That foundation, started by his parents in 1964,
>controls 10.4 percent of HP stock, making it the company's largest single
>shareholder.
>
>How the Foundation's 12 board members vote could make or break the deal,
>observers say. George Vera, the Foundation's chief financial officer, on
>Tuesday said the board is hiring its own independent consultant to analyze
>the proposed acquisition. He said the board will make its own decision, which
>would probably be voted on after the New Year.
>
>In an interview, the 61-year-old Packard -- a former professor of Ancient
>Greek and Latin studies, and chairman and president of the Packard Humanities
>Institute and Stanford Theatre Foundation -- explained his reasoning.
>
>``I sort of care more about some of the old-fashioned cultural values than I
>really should,'' Packard said. He is ``quite unhappy,'' for example, about
>the so-called ``5 percent rule'' -- performance evaluations that mandate
>identifying a bottom 5 percent of the company's performers.
>
>``HP never did that, it never happened before. HP almost never laid anybody
>off, but HP was very careful to say that it's not like they're schoolteachers
>-- they did not have tenure,'' said Packard.
>
>``But they (his father and Bill Hewlett) managed a company in a way that it
>was never necessary to tell people `Sorry, business is not very good, so
>goodbye.' ''
>
>Packard, who has known Walter Hewlett since the two were young children, said
>he also wanted to show solidarity and offer his moral support.
>
>``Walter is sticking his neck out here,'' said Packard. ``Some people will
>praise him and some people will publicly criticize him, but I do share his
>views. And I thought I might as well go on the record,'' he said.
>
>=======================================
>
>Wirt Atmar
>
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