The William and Flora Hewlett Foundation, an influential private philanthropic organisation founded by Hewlett-Packard founder William Hewlett, yesterday publicly criticised the Hewlett Packard-Compaq merger.

A spokesman at the Menlo Park, California-based foundation said the group was telling other institutional investors that it believed the two companies were worth more as separate entities than as a merged corporation.

The foundation is preparing to release a public statement soon, the spokesman said. Computer maker Compaq and Hewlett-Packard announced its $25 billion (€27.86 billion) deal in September.

Shares of the company have been in a slump since the announcement and several institutional investors have been critical of the deal, saying the merger would hobble the companies as the technology market continues to sink.

Hewlett-Packard chief Ms Carly Fiorina has been been busy selling the deal and has criticised those opposing the pact as short-sighted.