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Enron Mail |
The following is the Board approved statement in response to Walter
Hewlett's letter to the Board. We plan to distribute on the newswires momentarily. Grace < December 13, 2001 < < TO: Mr. Walter Hewlett < < FROM: Compaq Board of Directors < < ______________________________________________________________________ < __ < < This is a response to your letter of December 12, 2001. < < We and the Compaq management team strongly disagree with your < conclusions. < < The Board of Directors of Compaq has carefully analyzed the short-term < and long-term impact as well as the strategic implications of the < proposed HP-Compaq merger. We are disappointed that both the Hewlett < Foundation and the Packard Foundation have decided to oppose the < transaction. We continue to believe that the combination of HP and < Compaq will provide better market coverage, significant synergies and < higher profits than either company would achieve on its own. These < benefits will lead to the creation of long-term value for both Compaq < and HP shareholders. < < On that basis, we believe that this merger is well worth the effort < and that our employees, shareholders and customers will be better < served in the long term. Therefore we will continue to vigorously < encourage shareholders to vote in favor of the transaction. < < In addition, we are confident that over the coming months, the < shareholders of both companies will recognize the value of the merger < and give their approval. < < The Board of Directors of Compaq is pleased with the execution of the < company's present strategy and with its market momentum. We intend to < maintain this positive momentum and bring an even stronger Compaq to < the merger. < < < Grace Chen Trent - Executive Director < Office of the Chairman & CEO < Compaq Computer Corporation < 20555 SH 249 - MS110802 < Houston, Texas 77070-2698 < 281-518-9460 work < 281-518-9882 fax < < <
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