California group to vote against HP-Compaq merger

PALO ALTO, CALIFORNIA - The California Public Employees Retirement System became the latest big Hewlett-Packard Co. investor to say it will vote against HP&#39;s $22 billion purchase of Compaq Computer Corp. <br> <br> Calpers, as the $151 billion pension fund for state workers is known, owns 7.6 million shares of HP, or 0.39 percent of the company. <br> <br> The fund said HP is paying too much for Compaq and the deal carries too many risks. Calpers said its investment would be best served if HP focused on being a ``best-of-breed company in the printing and imaging business while strengthening its storage, service and high-end consulting businesses.&#39;&#39; <br> <br> Calpers also owns 6.5 million shares, or 0.39 percent, of Compaq, according to Lionshares.com, which tracks corporate ownership.<br> <br> Led by the Hewlett and Packard families and their foundations, more than 20 percent of HP shares are expected to vote against the Compaq acquisition on March 19. <br> <br> An influential proxy advisory firm blessed the acquisition this week, but the number of shares that decision will affect is unclear. <br> <br> HP shares gained 59 cents, nearly 3 percent, to $20.59 on Friday on the New York Stock Exchange, where shares of Houston-based Compaq rose 65 cents, nearly 6 percent, to $11.80.

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