HP called to give evidence in merger inquiry

Hewlett-Packard is being called to give evidence in connection with two investigations into its planned merger with Compaq.

Hewlett-Packard is being called to give evidence in connection with two investigations into its planned merger with Compaq.

HP has been subpoenaed by the US Attorney's office for the southern district of New York concerning the voting by Deutsche Bank and Northern Trust and their affiliates in connection with the merger proposal.

Separately, HP says the US Securities and Exchange Commission is also requesting documents and related information on a voluntary basis.

These concern HP's relationships and communications with Deutsche Bank and others regarding the solicitation of votes in connection with the merger proposal.

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HP says: "We have long-standing relationships with Deutsche Bank as well as with many other institutional shareholders. Some of them voted for the merger, others against, some split their votes, and others changed their minds - in both directions."

The company says the SEC has advised it that the inquiry shouldn't be viewed as an indication that any laws have been broken.

HP says it remains optimistic about completing the merger with Compaq on schedule.

It says "We never acted improperly. We remain optimistic that we can close the merger on our current schedule."

HP says it's co-operating fully with both inquiries.

PA