Researcher Backs H-P-Compaq Merger

Updated from 4:40 p.m. EST

Carly Fiorina can take a breath. Just one, then it's time to start campaigning again.

Research firm Institutional Shareholder Services issued its report after the market's close Tuesday, lending crucial backing to the merger between Hewlett-Packard (HWP Quote) and Compaq(CPQ Quote). The ISS vote was considered a leading way for Hewlett-Packard to well up enough support overcome the Hewlett and Packard families' intention to vote their 18% against the merger.

"We believe that the Compaq merger provides a better means of maximizing long-term value by exploiting the potential of all of H-P's assets rather than just a single 'crown jewel,' " concluded report author Ram Kumar. ...