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."