Out-Law / Your Daily Need-To-Know

Hewlett-Packard and Compaq decided not to offer to dispose of any of their businesses before the European Commission decides on the competition aspects of their proposed merger, according to the Financial Times.

The deadline for making a compromise offer expired last night. If the Commission deems that the proposed merger represents a threat to competition, it may instruct a four month investigation. A decision is expected by the end of this month. According to the FT, HP is not expected to set a date for putting the merger proposal to its shareholders for a formal vote until after the Commission's decision.

HP is currently struggling to win investor support. This month, the influential US business magazine Red Herring is running an editorial campaign for an abortion of the merger and the resignation of HP's CEO, Carly Fiorina.

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