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Compaq Computer Acquisition Seems A Go

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A Delaware judge has cleared Hewlett-Packard of allegations it acted improperly in the vicious proxy fight over the Compaq Computer acquisition.

The decision is likely to pave the way for completion of the high-tech industry´s biggest merger.

The judge ruled former H-P director Walter Hewlett failed to support charges that H-P bullied a big investor into supporting the deal – and lied to investors about the progress of merger plans.

Hewlett can challenge the ruling in the Delaware Supreme Court. The H-P heir says he plans to review the ruling closely before deciding on his next step.

Palo Alto-based H-P and Houston-based Compaq have said they plan to begin working together May seventh.

An H-P spokeswoman did not immediately return a call seeking comment.