Hewlett-Packard Company (HPQ)

[Temperament]

I've been mulling over last 2 days about this spinoff so far have seen some of your replies and read others from internet but here's what I really think.

The real reason I believe they are splitting is to set themselves up to look smaller and more attractive to suitors for potential mergers. Almost everybody in this forum saying PC is in decline so any potential suitor who likes and wants to buy or merge with HP may not like to pay for the PC business. So by cutting out compaq or spliting it from HP core business will make HP smaller leaner minus the crust that nobody want and any suitor will also have a dotted line ownership to new HP inc (compaq and printer business) but don't have to pay for it is the beauty of it.

You look at all the players today microsoft ibm oracle they are all selling both hardware and business application of some sort all except HP. And all of them are playing the protecting turf game "buy my hardware get cheap license for software but buy or use other hardware pay thru the nose for the licenses"

I believe HP now already having potential suitors, they didnt or couldn't split away before I believe maybe back then there wasn't anything firm yet so I suspect it's all down to the timing.

So who are the potential suitors and how long will it take?

For that I have some idea but you need to look at the various strategic partnerships of HP. example 3com the network company was a partner before HP bought them out so I'll let you guys do some digging by yourselves.

According to news reports 3rd of the 5 year turnaround plan of Meg Whitman is in 2015 when the company will split so by 2017 it is the deadline for the 5 year plan when it needs to produce result.

You see I was right. The newly spun off entity HPE is merging with CSC

http://www.datacenterknowledge.com/archi...ices-unit/

From 73 units of HP,
i have got Agilent, Keysight, HPE, (one more coy converted into cash).
Don't know what spin-off i will be getting in future?

Do i make any money?
i don't think so utd as far as my holdings.
Massive loss in FX exchange from about 1 SGP $ to 3 US $ to now 1.3xx US $.
Makes me wary of investing in other countries.

[corydorus]

Rate 3US$ ?? the highest was 2.3US$ in 1985

[Temperament]

Rate 3US$ ?? the highest was 2.3US$ in 1985

Did i said from 1985?
About 3 US $ to 1 SGP $ TIME.
Maybe a little less.

[corydorus]

Rate 3US$ ?? the highest was 2.3US$ in 1985

Did i said from 1985?
About 3 US $ to 1 SGP $ TIME.
Maybe a little less.

No, of course. What I meant it has to be a long time since 1985 is already 31 years ago ....

[Temperament]

Rate 3US$ ?? the highest was 2.3US$ in 1985

Did i said from 1985?
About 3 US $ to 1 SGP $ TIME.
Maybe a little less.

No, of course. What I meant it has to be a long time since 1985 is already 31 years ago ....

Yes it's a long, long, time,
i am 68 going to 69.
May be not so accurate on figures and dates anymore.

[chialc88]

Enterprise Services is also known as hpes.
It was primarily EDS (plus small part of original hp managed services).

With the spin off of hpes, Hewlett Packard Enterprise consists of EG, SW and FS, 
aka back to the original hp without EDS.

Recall that EDS was purchased so that when EDS customer need to refresh or upgrade 
their severs/storage/network, HP platform should be the de-facto choice.
Synergy was the main theme.

With hpes spin off and merge into CSC, it shows that the original "synergy" story does not play well.


(incidentally, last year, CSC spin off it's public sector business called CSRA)

3 growth/initiatives:
1. CSC will gain a strong foothold in HP's stronghold in Telco and Pharma.
2. CSC willl benefits from HP Cloud, application and mobility platform.
3. Cost saving in consolidation of Data Center, manpower etc.



 Love Compassion

[corydorus]

That's what i exactly like about the split. Contrary to many people believe, the stronger units are actually the Printer and PCs. Deals make by enterprising units can be "subsidies" or "shared by Revenue" by other business groups of low margins which on paper seems to show Enterprise units are doing well. Splitting them out will put pressure to improve.

As expected, is the HPQ ( HP Inc ) that is the performing one despite less glamorous. PC Client aren't dying. It is still a huge market.

""HP Inc has done surprisingly well for being in PCs and printers," said David Heger, an analyst with Edward Jones. "You're not seeing the results out of HPE that you might have expected. They kind of keep muddying the waters.""

http://www.businesstimes.com.sg/technolo...1503414306

HP

[cyclone]

Xerox considers takeover offer for PC maker HP: WSJ

NOVEMBER 6, 2019 / 11:13 AM

(Reuters) - Xerox Holdings Corp (XRX.N) is considering making a cash-and-stock offer for personal computer maker HP Inc (HPQ.N) at a premium to its market value of about $27 billion, the Wall Street Journal reported on Tuesday.

Xerox's board discussed the possibility on Tuesday, the newspaper said here, citing people familiar with the matter.

There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added.

Norwalk, Connecticut-based Xerox has also received an informal funding commitment from a major bank, the Journal said.

HP does not comment on rumors or speculation, a company spokeswoman told Reuters.

Xerox did not respond to a Reuters’ request for comment.

On Monday, Xerox had said it will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings (4901.T), for $2.3 billion, after investor activism scuppered a deal involving the two companies.

More details in https://www.reuters.com/article/us-hp-m-...SKBN1XG0EQ

[cyclone]

Icahn takes stake in HP, pushes for merger with Xerox: WSJ

Reporting by Maria Ponnezhath and Anurag Maan; Editing by Subhranshu Sahu and Shailesh Kuber
NOVEMBER 14, 2019 / 11:13 AM

(Reuters) - Activist investor Carl Icahn has bought a $1.2 billion stake in HP Inc and is pushing for the personal computer maker’s merger with printer maker Xerox Corp, arguing that a union could yield big profits for investors, the Wall Street Journal reported on Wednesday.

Icahn, who owns a 10.6% stake in Xerox, now owns a 4.24% stake in HP, the Journal said here

An HP spokesperson told Reuters the company is aware of Icahn’s investment and is committed to doing what is in the best interests of all HP shareholders. HP did not disclose how much stake Icahn owns in the PC maker.

Xerox made a roughly $33 billion cash-and-stock offer for HP, a company more than three times Xerox’s size, Reuters reported last week. HP confirmed the bid, but has not disclosed the offer price.

“I think a combination is a no-brainer,” Icahn was quoted as saying by the Journal.

“I believe very strongly in the synergies,” he said, adding that “there will probably be a choice between cash and stock and I would much rather have the stock, assuming there’s a good management team.”

Xerox believes it can achieve at least $2 billion in annual cost synergies by creating an office technology supplies giant, one source told Reuters last week.

The billionaire told the Journal that his team began looking at HP in late February and he bought the company’s shares from late April to mid-August, though he did not have a deal with Xerox in mind when he started accumulating the shares.

Icahn said he believes a combined company is in the best interests of both sets of shareholders given the potential for cost savings and to market a more balanced portfolio of printer offerings, the WSJ reported.

More details in https://www.reuters.com/article/us-hp-m-...SKBN1XO0FA

[cyclone]

HP reiterates its rejection of Xerox's offer to buy the company

Reporting by Rama Venkat in Bengaluru; Editing by Peter Cooney
NOVEMBER 25, 2019 / 5:53 AM

(Reuters) - HP Inc (HPQ.N) reiterated on Sunday its rejection of Xerox Corp’s (XRX.N) $33.5 billion cash-and-stock offer for the company, adding that the proposal “significantly undervalues HP.”

The personal computer maker said last Sunday it rebuffed Xerox’s offer, and that it was open to exploring its own bid for the U.S. printer maker. Xerox had offered HP shareholders $22 per share, involving $17 in cash and 0.137 Xerox share for each HP share, according to a Nov. 5 letter.

“We reiterate that we reject Xerox’s proposal as it significantly undervalues HP,” HP said in a letter to Xerox made public on Sunday.

“There continues to be uncertainty regarding Xerox’s ability to raise the cash portion of the proposed consideration and concerns regarding the prudence of the resulting outsized debt burden on the value of the combined company’s stock even if the financing were obtained,” the letter added.

HP also said it was concerned that Xerox’s exit from Fujifilm’s joint venture earlier this month left a “sizeable strategic hole in Xerox’s portfolio”.

More details in https://www.reuters.com/article/us-hp-m-...SKBN1XY0PQ