MERGER: Hewlett-Packard said yesterday it had won approval for its $20 billion merger with Compaq Computer by a 2.8 per cent margin, according to prelimiary results released to the two companies by an independent vote counter.

The margin is enough to prevail even if a court review of a challenge throws out votes opponents claim Hewlett-Packard bought.

Following that announcement, Hewlett-Packard chief executive Ms Carly Fiorina in a memo to employees, said the merger could close in less than two weeks, though a court challenge, possible recount and regulatory investigations loom.

A spokeswoman for the company's Irish operation said the tally was a great boost but no action on merging the two groups, which employ 4,300 here, would take place until a final result emerged.

Dissident board member Mr Walter Hewlett said he would challenge the preliminary count and urge a judge to call a new vote.

The figures come less than a week before a trial is set to begin over Mr Hewlett's allegations that Hewlett-Packard coerced or bought votes, especially some 17 million votes by Deutsche Bank Asset Management, a charge which Hewlett-Packard and Deutsche both deny. Out of 1.63 billion shares voted, only 45 million votes, fewer than the stakes of some large shareholders, separated the two sides.

Hewlett-Packard said 837.9 million shares were voted in favor of the deal while 792.6 million shares were voted against it.

Votes were counted by IVS Associates, a Delaware corporate balloting company. IVS would not comment on Hewlett-Packard's statement.

Hewlett-Packard called the figures preliminary but said only an "insignificant number" of votes remain unresolved. A source close to the company put that at about one million.

Mr Hewlett, who bitterly fought the merger and continues to dispute the results in court, said he also would challenge the vote count.

A recount would take about a week with an agreed challenge process adding a further one or two days to the uncertainty.

The initial tally of the March 19th vote means that, even if the approximately 17 million shares voted by Deutsche Asset Management in favor of the deal had gone against the merger, Hewlett-Packard still would have come out on top.

Mr Hewlett contends in a lawsuit that the company essentially bought Deutsche's approval on the day of the vote and has suggested a new vote.