Interest in HP assets spikes after Dell news: source

Wed Jan 16, 2013 4:01pm EST

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(Reuters) - Hewlett-Packard Co in recent days has received a large number of casual overtures exploring a purchase of some of its assets, but the company has no intention of selling any major units, a source familiar with the matter said on Wednesday.

While HP gets feelers from bankers, representatives from private equity and technology companies regularly, the inquiries have increased in the days since news emerged that rival Dell Inc was in discussions with private equity group Silver Lake about a potential buyout, the source said.

The Wall Street Journal on Wednesday cited unidentified people familiar with the matter as saying "some potential buyers" have expressed interest in HP's Autonomy and EDS units, without elaborating.

HP declined to comment.

HP has written down billions of dollars in the values of both Autonomy and EDS, which it acquired in past years. Even so, HP Chief Executive Meg Whitman has said Autonomy and EDS remained key technological assets for the company.

Autonomy is under a federal investigation after HP accused its former management of accounting improprieties.

HP did say in a recent regulatory filing that it plans to divest some businesses that "no longer help us meet our objectives," but those are expected to be non-core, small assets.

Shares in HP climbed 4.4 percent to $17.27 in afternoon trade after the Journal report.

(Reporting by Poornima Gupta; Editing by Leslie Adler)

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Comments (1)
Slammy wrote:
My company made a corporate decision this year to cease buying all products from Dell given that their call centers are in India. Given India’s track record on human rights involving the of rape of women we are ceasing all business with companies who use their call centers or other services. The Dell rep, who was calling from India, was aghast when we told him our new policy. Hopefully other businesses will follow suit. Without such pressure we feel India will never make meaningful reform for protection of its daughters.

Jan 16, 2013 4:32pm EST  --  Report as abuse
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