The head of Compaq Comp-uter told employees that the company is exploring the company’s future prospects should its $24 billion merger with Hewlett-Packard fall through. Last week Michael Capellas, chief executive of Compaq, e-mailed a memo to employees explaining that the Houston-based computer maker must ‘maintain a pragmatic view of our business and a clear focus on the future’ given opposition by the Hewlett and Packard families to the merger.

Capellas is hoping for the best, but gearing up for the worse

Capellas said in the memo that Compaq would focus on large corporate customers with packages of software, hardware and related services ‘whether we are part of the new HP or a stand-alone company.’

“I want to be very clear. I absolutely support the merger,” he said. “The merger was all about taking all the great capabilities that Compaq had and creating a really new form of delivery with a complete solution and road map, and I’m absolutely behind it. So if anybody is questioning that, let there be no doubt. I am completely behind it.”

In a separate e-mail to all HP employees after the Packard Foundation vote, CEO Carly Fiorina said that winning shareholder support is still very much within reach. She acknowledged that the controversy has been difficult but said this also is an ‘often exhilarating’ time in HP’s history.

“No one ever achieved greatness by giving up when the critics on the sidelines voice their concerns,” she wrote. “Rest assured that we do not intend to give up, and we will continue our efforts to return this company to greatness. Every one of you can help by staying positive about the merger, educating yourself about its benefits and by delivering strong first-quarter results.”

HP and Compaq say they will continue to talk up the benefits of the deal in the hope of ultimately winning shareholder support. If either company were to pull out of the deal, it would owe the other $675 million.

Reuters