Hewlett-Packard Gains, Compaq Falls on Charity Vote

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Compaq

(CPQ)

was falling and

Hewlett-Packard

(HWP)

was gaining after a big shareholder voted not to support their merger.

The David and Lucile Packard Foundation voted Friday not to support the deal. Hewlett-Packard's full shareholder base is scheduled to vote on the transaction next month.

The charity, whose board met for the vote in Los Altos, Calif., holds 10% of Hewlett-Packard's stock. The decision comes about a month after members of the Hewlett family, which owns around 5% of H-P's stock, said they planned to vote against the proposed merger.

In premarket Instinet trading, Compaq was losing 11.7% to $10, and H-P was climbing 4.8% to $24.65.