Dissident says Hewlett-Packard/Compaq merger vote 'too close to call'

Supporters of Hewlett-Packard's plan to buy Compaq are cautiously claiming victory in a shareholder vote on the merger.

HP's chief executive Carly Fiorina says preliminary results suggest a "slim but sufficient" majority of HP shareholders back the merger.

But HP board member Walter Hewlett, the chief campaigner against the merger, insists the outcome of the ballot remains too close to call.

Ms Fiorina says: "We are gratified that HP shareowners recognise the compelling strategic and economic benefits of the merger and that a decisive majority of shares not affiliated with the Hewlett and Packard families appear to have voted in favour of this transaction."

She states: "We believe that with this endorsement from our shareholders, HP has an historic opportunity to lead in a rapidly evolving industry."

But she concedes that her views, which are based on an estimate of shareholder proxies by HP's own proxy solicitor, do not represent an official tally.

The official outcome of the vote will not be known for a few weeks, and observers maintain the ballot will be decided by the narrowest of margins - possibly as small as one or two percentage points.

Mr Hewlett, who has waged a high-profile proxy campaign against the merger proposal for the last five months, is refusing to admit defeat.

He claims the results of the vote are "too close to call" and says he's optimistic that shareholders have rejected the deal.

Mr Hewlett, who wishes to remain on the HP board even if the shareholders approve the merger plan, says: "It is simply impossible to determine the outcome of the vote at this time."