The project of big merger between HP and Compaq compromised

The announce of the big merger between HP and Compaq had shaken the IT sector two months ago but is it finally going to happen? You can doubt about it since yesterday with the crushing rejection that Walter Hewlett, member of Hewlett-Packard's board of directors and son of his co-founder, William Hewlett opposed to the project on behalf of a group of shareholders. La Tribune, in the article "The Hewlett's refusal compromise the merger between HP and Compaq " gives an idea of his enthusiasm: It is a bad transaction. The earlier it'll end, the better it will be". Moreover, the 5% of HP securities that his group represents won't be concerned by the merger.

What will the Packard family, who did not give their opinion, do now? If they agreed with the Hewlett's, the merger might not succeed. At least, the HP security increased more than 17% through the day whereas, on the contrary, Compaq was down 5.5%.