Palo Alto, Calif. - The Hewlett-Packard/Compaq Computer merger took another blow today as HP's biggest shareholder, the Packard family, said it will not support the deal.
Yesterday the family and foundation of HP co-founder William Hewlett said it would not vote in favor of the merger. The Packard family foundation owns 10 percent of HP's stock, while the Hewlett side owns another 5 percent. Wall Street gave thumbs down to the decision when it was announced in September driving down HP's stock. The stock rebounded yesterday on the families' announcement, but is down two points this afternoon.
The families position has not changed the decision of either HP's or Compaq's board of directors. Today each expressed their support for the $21 billion merger.