Monday, October 6, 2014

Technology giant Hewlett-Packard is broken – Reuters Germany


       

San Francisco (Reuters) – The technology giant Hewlett-Packard (HP) is radically restructured.


       

As the U.S. company announced on Monday, the computer and printer business are bundled into a new entity, separate from the more promising areas of computer servers and data storage for companies and other services. Both parts, the date each half contributing to revenue and profit should be listed on the stock exchange. Investors had called for such a move for some time. In the stock market there was a correspondingly good mood: HP shares also rose in premarket US trade by just five per cent to $ 37. The step is also a belated vindication for the German manager Leo Apotheker. He had already advocated this in 2011, but could not prevail and was shown the door after a short time at the helm of HP.


       

The company was founded in 1939 by Bill Hewlett and Dave Packard in a garage in California and has the legendary reputation of the Silicon Valley significantly influenced. Through the PC boom HP was great. The group still has more than 300,000 employees and will be set on a turnover of around $ 112 billion in the current year to the end of October. Meanwhile, however, dominate more and more mobile devices. Ever since the introduction of Apple iPad, the market is broken for classical computers, even though he recently stabilized at a lower level. In the new world has HP – as well as the restoration has become a case rival Dell – too little to oppose.


       

HP emphasized that unbundling should be completed by the end of fiscal 2015. The transaction is tax-free for shareholders. They were involved at the end of the two companies. Last week, eBay had already announced the splitting of the market places from payment processor PayPal. Again, investors had made strong for such a long separation.


       

The argument behind this company are then often performed better respond targeted to the competition and are not so dependent on constraints within a large group. Investors may now invest, without having to have concern that other areas could drag down the group and get it to cross-subsidization, said the former HP chairman Ralph Whitworth, who controls with his new investment firm 1.5 percent of HP shares. Analysts at Citibank stressed, HP had already radically lowered the cost and so strengthened the balance sheet. In addition, the PC business had stabilized, so now is a good time for the split.


       

The PC and printer area will operate as HP Inc and directed by Dion Weisler, who is already working there as a manager. Group chief Meg Whitman, who was brought to the sacking of Apotheker, will lead to other, faster growing activities under the name of Hewlett-Packard Enterprise. It will also be a director, manager at HP Inc.

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