HP might spin off personal computers unit
August 30, 2011
By: Anthony Mawrie
Hewlett Packard (HP) has announced that it might spin off its personal computers unit and added that it may separate the business from the company.
A spokeswoman for the company said that HP prefers a spin-off as a separate company and it will be in the best interests of HP's shareholders, customers and employees. She however added that the company has to complete the diligence process and validate this assumption, including fully understanding the dis-synergies in separating the PSG business from HP.
HP, which has been struggling in the PC market recently is looking into different alternatives which include shifting the business into a separate company through a spin-off or sale.
The company said that the process could take 12-18 months but a final decision is expected by the end of the year.
HP has been facing stiff competition from Apple Inc's iPad and earlier it had to take off its WebOS based TouchPad after it did not improve sales and earn enough profits.