Hewlett Heirs File Plan to Fight Merger

Hewlett-Packard Co. director Walter Hewlett, the son of company co-founder William Hewlett, will lobby shareholders to fight the planned acquisition of Compaq Computer Corp., according to a regulatory filing Friday.

Edwin van Bronkhorst, a shareholder and HP’s former chief financial officer, two sisters of Hewlett and the William R. Hewlett Revocable Trust also will participate in the proxy fight, the Securities & Exchange Commission filing said.

Hewlett and David Packard, the son of the company’s other co-founder, have criticized the $23.3-billion purchase, saying it would make HP more reliant on personal-computer sales and require too many layoffs. A shareholder vote is expected early next year.

“Hewlett coming out against the deal definitely raised a number of questions,” said David Katz, chief investment officer at Matrix Asset Advisors Inc., which owns HP shares and opposes the purchase. “Clearly, he is going to try to stop the deal.”

Last week, Hewlett hired proxy-solicitation firm MacKenzie Partners Inc., which started speculation that he would go on the offensive to try to attract other shareholders to his side. Hewlett could decide not to pursue a proxy fight, said Hewlett spokesman Todd Glass. The filing was meant to keep Hewlett’s options open, Glass said, adding that “Mr. Hewlett has not decided on a course of action.”

Van Bronkhorst is a former trustee of the David and Lucile Packard Foundation, which owns 10.4% of HP’s shares and hasn’t said how it will vote on the deal. The two Hewlett sisters are Eleanor Hewlett Gimon and Mary Hewlett Jaffe.

Shares of Palo Alto-based HP fell 59 cents, to $21.50, in New York Stock Exchange trading Friday. Houston-based Compaq fell 40cents, to $10.30, 24% lower than the per-share value of HP’s acquisition offer.