HP Hires Proxy Firm in Expected Merger Fight

Hewlett-Packard Co. hired a proxy-solicitation firm as management of the computer maker gears up to fight the co-founders’ relatives over plans to buy Compaq Computer Corp. for $20.9 billion.

Hewlett-Packard hired Innisfree M&A; Inc. to help promote the purchase, a spokeswoman said. Walter Hewlett, a board member and son of co-founder William Hewlett, on Friday hired proxy solicitor MacKenzie Partners Inc. as he considers how strongly to oppose the purchase.

The moves signal that a proxy fight is brewing as analysts worry that the personal-computer industry’s worst slump in more than 15 years will deepen and that the combined company would be too distracted to compete effectively.

Shares of Palo Alto-based Hewlett-Packard rose 31 cents to $19.30 on the NYSE. Compaq, also on the NYSE, fell 7 cents to $7.66.

The boards of both companies, with the exception of Walter Hewlett, have reiterated their support for the purchase.