March 10, 2011 / 4:52 AM / 9 years ago

Quanta shares fall on HP notebook sale rumour

TAIPEI, March 10 (Reuters) - Shares in Taiwan’s Quanta Computer Inc (2382.TW), Inventec Corp (2356.TW) and Hon Hai (2317.TW) fell on Thursday after a newspaper reported rumours that Hewlett Packard Co (HPQ.N) might sell its notebook unit, potentially threatening business at the three suppliers.

Taiwan’s Commercial Times said that HP might sell the business to South Korea’s Samsung Electronics (005930.KS), but had also approached Chinese computer maker Lenovo (0992.HK) and Hon Hai.

The paper cited market rumours and gave no other details on the source of its information.

HP, Samsung and Quanta said they would not comment on market rumours.

An HP source, who asked for anonymity because he is not authorised to talk to the media, said he has not heard about any sale, and added that he did not think it would make sense given that notebooks make up about 19 percent of HP’s total revenues.

Quanta, the biggest contract maker for HP in Taiwan, fell as much as three percent and was down 2.2 percent at 0300 GMT. Inventec and Hon Hai fell 1.3 percent and 2.1 percent respectively.

“The shares were reacting to the rumour because if it were true, it would have big impact on the Taiwan contract makers,” said Michael On, a managing director of Beyond Asset Management in Taipei.

Last month HP trimmed its 2011 revenue projections on weak consumer PC demand and a lacklustre showing from its IT services arm. Executives also said HP plans to include WebOS, Palm’s lauded operating system, in PCs later this year or in 2012.

(Additional reporting by Kim Miyoung in Seoul and Gabriel Madway in San Francisco)

(Reporting by Clare Jim; Editing by Jonathan Standing)

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