Hewlett-Packard Company (HPQ): You Can’t Touch This

Stocks opened higher this morning, with the Dow Jones Industrial Average and the broader S&P 500 gaining about 0.3% each as of 10:10 a.m. EST.

HP rebuffs would-be buyers
Yesterday, this column commented on reports that PC manufacturer Dell Inc. (NASDAQ:DELL) is in talks with a leveraged-buyout group to take the company private. It appears that the possibility of such a transaction may have emboldened other potential acquirers, as Dell’s rival and Dow component Hewlett-Packard Company (NYSE:HPQ) has also received expressions of interest for parts of its business — inquiries the companies firmly rebuffed.

Hewlett-Packard Company (NYSE:HPQ)In its latest annual report, released three weeks ago, HP added to the “Risk Factors” section that it continues to evaluate the potential sale of businesses that it considers noncore. The risk? “We may also dispose of a business at a price or on terms that are less desirable than we had anticipated,” it specified.

According to the reports, the expressions of interest concerned HP’s services division and its troubled Autonomy unit. Both are the products of acquisitions that triggered multibillion-dollar writedowns in 2012. (HP’s services division was built around its $14 billion acquisition of EDS in 2008.)

Selling either of these activities would amount to buying high and selling low, so the company may naturally be reluctant to make this open admission of failure (although it’s certainly not unheard of in the annals of corporate America). However, recall that HP’s CEO, Meg Whitman, wasn’t on the job when the company made these acquisitions; she’s working with a clean slate (although she was on the board that approved the purchase of Autonomy). In fact, Whitman nixed the plan to hive off HP’s PC division a month into her tenure as CEO. Which raises the question: If none of these activities is noncore, what, if anything, is HP interested in selling?

The article HP: You Can’t Touch This originally appeared on Fool.com.

Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned; you can follow him @longrunreturns. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!