Is Hewlett-Packard getting out of PCs?
Hewlett-Packard (HPQ), briefly shot higher on reports that it may spin off its personal-computer business and is in talks to buy British software developer Autonomy (AUTNF) for $10 billion bid.
HP shares hit $34 at about 12:20 p.m. ET but fell back quickly. At 12:40 p.m. ET, the shares were off 1.5% to $30.93. HP is scheduled to report fiscal-third-quarter results after today's close.
Autonomy shares, meanwhile, were up 55.8% to $39.75.
While HP's PC business is the world's largest, it is a low-profit-margin business, and CEO Leo Apotheker wants to lessen the tech giant's depends on computers. As a former head of SAP (SAP), he also sees enterprise software offering greater opportunities.
IF this happens, will Dell get arrogant and raise their prices while decreasing quality assuming they'll get HP's market share or will they be smart and do everything possible to take all of HP's market share?