HP Director Moves to Block Compaq Purchase

Hewlett-Packard Co. director Walter Hewlett, son of a company co-founder, has hired proxy-solicitation firm MacKenzie Partners Inc. as he opposes the second-biggest computer maker’s planned $20.5-billion purchase of Compaq Computer Corp.

Such a move typically signals the start of a proxy battle to control the direction of a company, and investors said it’s likely that Walter Hewlett--who previously said he hadn’t decided how strongly to fight the acquisition--is about to go on the offensive to try to lure other shareholders to his side.

Hewlett family members and the William R. Hewlett Revocable Trust said Tuesday that they would vote their 5% stake against the deal.

Walter Hewlett hasn’t decided whether to start asking for proxies against the purchase, according to his spokeswoman, Joele Frank.

Hewlett-Packard also postponed an analyst meeting that had been planned for December until early next year, citing analysts’ concerns about travel and budgets and the company’s desire to be further along in planning the purchase of Compaq.

Hewlett-Packard shares rose 64 cents to $18.99, and Compaq fell 26 cents to $7.73, both on the New York Stock Exchange.