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  Big HP investor backs Compaq deal
Time: 16:13 EST/21:13 GMT | News Source: CNET | Posted By: Guillaume Hébert

One of Hewlett-Packard's largest institutional investors said it supports the planned acquisition of Compaq Computer, a rare statement in an industry where many tend not to disclose their positions. Alliance Capital, which owns about 21.3 million shares, or 1 percent of the computer and printer maker, has endorsed the controversial deal, spokesman John Meyers confirmed Tuesday. Alliance Vice Chairman Lewis Sanders' opinion on the merger was made public in The Wall Street Journal. Sanders called the deal an "industrial consolidation" that would provide both companies with the best possible chance of succeeding amid a tough market for PCs.

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