Hewlett-Packard (HPQ) says it will keep its personal-computer division, reversing the proposal to carve out the unit from the rest of HP, the Wall Street Journal reports.
The breakup would have cost about $1.5 billion in fees, and another $1 billion annually from reduced purchasing power and lost joint-branding opportunities, according to HP’s chief financial officer, Cathy Lesjak, in comments from a Journal interview.
“It slowly but surely became very clear that the math just wasn’t going to work on this one,”� Lesjak said.
Clearly someone was using an abacus.
We talked earlier today with money manager Keith Goddard about Intel (INTC), which he likes because it keeps delivering to the puzzlement of analysts, despite the imminent death of the PC. Goddard, who manages the 5-Star Capital Advisors Growth Fund (CIAOX), quips, “People in the emerging markets seem to be buying PCs hand over fist.”
HP shares were up nearly 5%, or $1.24, on Thursday, and were unchanged in after-hours trading at $27.
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