Hewlett-Packard would be in a stronger position if it completes its proposed $25 billion (€28.5 billion) merger with Compaq Computer, a senior Hewlett-Packard manager has said.
The comments come just days before the European Commission is due to make an initial ruling on the merger that could affect the jobs of 4,300 Compaq and HP workers in the Republic.
Mr Sean Gallagher, marketing manager for Hewlett-Packard's European business PC operation, said the merger was about scale and giving the company bigger buying power.
The proposed merger of the two giant technology firms would create stronger competition for Dell in the personal computer market.
But the deal has met strong resistance from members of the Hewlett and Packard families, who have publicly said they plan to vote against the merger. In addition, Mr Walter Hewlett, the most vocal critic of the deal, has mounted an energetic campaign to sway shareholders to vote "no".
Both companies have said they intend to proceed with the plan, and a vote is expected in March.
Hewlett-Packard's Mr Gallagher, originally from Mayo but now working in France for Hewlett-Packard, said the firm had not seen any negative impact from customers following the merger announcement. But for everyone concerned, including the employees, it would be good to have a clearer situation, he added.
Hewlett-Packard grew its market share slightly in the European PC market during the past quarter to 7.9 per cent, according to Gartner Dataquest. Rival consultancy IDC said Hewlett-Packard's share of the global PC market is 12.2 per cent, which places it third behind Compaq and Dell.
Analysts believe the longer the proposed merger is held up by shareholder infighting or regulatory difficulties, the more confused customers will become.
Mr Gallagher's comments come just days before the European Commission is set to make an initial ruling on whether the proposed Hewlett-Packard/ Compaq merger can go ahead.
Mr Mario Monti, the European Competition Commissioner, will next week decide on one of three options following a month-long investigation of the deal.
He could block the deal if he believes it would harm competition in the European IT sector or set up a four-month probe to have a closer look at the effects of the merger on rival companies.
A third option would be to clear the takeover if he is convinced the enlarged group would pose no potential competition concerns.
The proposed merger could have serious implications for the companies' combined Irish workforce. The firms have said they would cut 15,000 jobs worldwide as a result of the merger, but analysts predict this figure could rise to about 30,000.
Hewlett-Packard employs about 2,200 people in Dublin and Leixlip, while Compaq employs about 2,100 people in the Republic and Northern Ireland. There would be an overlap in sales, marketing and finance here that could result in job cuts if the merger is agreed.
