Hewlett-Packard Urges Holders to Back Deal

Hewlett-Packard Co. accused director Walter Hewlett of misleading investors on the purchase of Compaq Computer Corp., saying that he’s a “musician and academic” who never worked at the company and that the other board members support the proposed deal.

“We strongly object to his flawed presentation of the merger, which misleads rather than informs shareowners,” said the letter signed by Chief Executive Carly Fiorina and HP’s other directors.

The company and Hewlett, eldest son of HP’s co-founder, have been squabbling for months over the Compaq deal. But the letter HP sent to its 900,000 shareholders appeared to be the harshest attack yet on Hewlett and his credentials.

Hewlett sent his own letter to shareholders Wednesday, saying the Compaq deal is too risky and would increase HP’s exposure to weak businesses.

HP shares fell 92 cents to $22.61, while shares of Houston-based Compaq fell 28 cents to $11.52, both on the New York Stock Exchange.