The proposed merger of Hewlett-Packard (HP) with Compaq has received a thumbs down from one of HP's largest investors.
The largest pension fund in the US, the California Public Employees' Retirement System (CalPERS), has announced that it plans to vote against the merger.
CalPERS has more than 7.6 million shares of HP stock.
Although the pension fund's stake represents only about half of one per cent of HP's shares, the announcement is the first indication that intitutional investors will not be swayed by advice they received from Institutional Shareholder Services (ISS).
The ISS approved of the deal but the decision by CalPERS, which is an ISS client, comes just days after HP received the good news from ISS.
Pat Macht, a CalPERS spokeswoman, said that although her company subscribes to ISS, they were not bound by its advice.
"We were more concerned with the premium paid for Compaq than [ISS] was and for us, the risks are not worth it. They did not take into account the changes under way in the technology industry and the risks of standing still."
Analysts said the decision might have a bigger effect on smaller investors than on other institutions.
HP shareholders will vote on the merger on 19 March.
Engineer calculates that Chengdu's plan to replace streetlights with artificial moonlight would cost $100bn
Dark matter holds the Universe together - and gravitational waves could help identify it
Addison Lee is working on autonomous taxis for commuting and pleasure
IBM and Technical University of Munich team demonstrate how Shor's algorithm, which can't be cracked by conventional computers, can be solved quickly with quantum computing