HP Could Flourish Sans Compaq, Hewlett Says

Walter Hewlett, the Hewlett-Packard Co. shareholder waging a proxy battle to stop HP from buying Compaq Computer Corp., said the company could be worth $14 to $17 more per share in 12 months without Compaq.

Hewlett, a son of HP co-founder Bill Hewlett, said in a filing with the Securities and Exchange Commission that by focusing on high-margin businesses such as its printing franchise, HP had the potential to double operating margins to 8.4% from 4.2% by fiscal 2003.

HP denied the new report.

HP shares fell 60 cents $19.76, and Compaq fell 39 cents to $10.56, both on the NYSE.