PALO ALTO, CALIFORNIA - Another large Hewlett-Packard Co. investor supports the technology giant's contentious plan to buy Compaq Computer Corp., Compaq chief Michael Capellas said Friday. <br>
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Capellas told financial analysts in New York that he had met with Putnam Investments and determined the firm was ``positive'' about the $24.2 billion deal. Putnam, which is Compaq's largest shareholder, also held 1.7 percent of HP shares as of Sept. 30. <br>
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Putnam spokesman Matthew Keenan said the firm does not discuss its position on such matters. HP declined to comment. <br>
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So far, the only large HP investor to announce its intention to vote for the deal is Alliance Capital Management, which owns 1.1 percent of HP shares. <br>
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Such support is crucial if HP management is to overcome the opposition of Hewlett and Packard family members and foundations with more than 18 percent of the company's stock. Sons of the company's co-founders have been sharply critical of the deal and CEO Carly Fiorina. <br>
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The most important undecided constituency is Institutional Shareholder Services, a Maryland firm that advises large stockholders and in some cases actually votes for them. ISS will vote for Barclays Global Investors, which owns 3.1 percent of HP stock, because Barclays chief Patricia Dunn is on HP's board. <br>
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A report from ISS could come as early as next month. HP executives met with ISS on Thursday; Capellas plans to lobby the firm early next week. <br>
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A date for a shareholder vote has not been set.
