Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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 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.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!