Analysts: HP should break up

Stefan Mileschin · 11th October 2012, 06:38

Despite HP insisting that it must converge under 'One HP', an analyst report from UBS has said the company would be better off if it was broken up into a division that sells hardware and another which looks after businesses.

According to Bloomberg, which has seen the report, UBS analysts claim that the company would be worth more than $20 a share if its businesses operated independently. At the moment a second hand HP share can be picked up for $14.46 if you know where to look.

Penned by Steven Milunovich, the report said that HP, with its fully developed enterprise and consumer businesses, should split up in order to realise greater value.

He said that HP's units were whales packed into the same pond.

CEO Meg Whitman said she won't spin off the PC business, a move contemplated by her predecessor, Leo Apotheker.

UBS said the computer company would lose purchasing power in a breakup, while gaining "focus" and branding power. However, HP has dismissed the report saying that its operations across business units are deeply integrated and its customers have told it that they want One HP.

UBS thinks that the company might not have a choice as investors might force HP to break up.

HP is in denial about the growth prospects for PCs and possibly printers, the fact is that HP has substantial assets, Milunovich wrote.

http://news.techeye.net/hardware/ana...hould-break-up

11th October 2012, 06:38	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,500	Analysts: HP should break up Despite HP insisting that it must converge under 'One HP', an analyst report from UBS has said the company would be better off if it was broken up into a division that sells hardware and another which looks after businesses. According to Bloomberg, which has seen the report, UBS analysts claim that the company would be worth more than $20 a share if its businesses operated independently. At the moment a second hand HP share can be picked up for $14.46 if you know where to look. Penned by Steven Milunovich, the report said that HP, with its fully developed enterprise and consumer businesses, should split up in order to realise greater value. He said that HP's units were whales packed into the same pond. CEO Meg Whitman said she won't spin off the PC business, a move contemplated by her predecessor, Leo Apotheker. UBS said the computer company would lose purchasing power in a breakup, while gaining "focus" and branding power. However, HP has dismissed the report saying that its operations across business units are deeply integrated and its customers have told it that they want One HP. UBS thinks that the company might not have a choice as investors might force HP to break up. HP is in denial about the growth prospects for PCs and possibly printers, the fact is that HP has substantial assets, Milunovich wrote. http://news.techeye.net/hardware/ana...hould-break-up

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Analysts Lower Expectations for Facebook by $1B	Stefan Mileschin	WebNews	0	3rd September 2012 09:33
Analysts downplay Apple's financial results	Stefan Mileschin	WebNews	0	23rd July 2012 08:26
Analysts think Intel Ultrabooks will sell like hot cakes	Stefan Mileschin	WebNews	0	16th April 2012 05:48
AMD: Analysts expect losses to continue	jmke	WebNews	0	20th April 2009 22:02
CES: Future of Blu-ray optimistic, analysts say	Shogun	WebNews	0	12th January 2009 01:29
Analysts Skeptical of AMD Outsourcing Plan	jmke	WebNews	0	19th June 2007 20:39
Yet Another Analysts Predicts AMD-Dell Deal.	jmke	WebNews	0	1st February 2006 17:18