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HP Suggests It’s Looking at Weeding Its Holdings
It continues “to evaluate the potential disposition of assets and businesses”
By: Maureen O'Gara
Jan. 3, 2013 08:30 AM
Hewlett-Packard, which is desperately seeking ways to get its boat off the sandbar, told the SEC last week in its annual 10-K that "we continue to evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives."
Bloomberg, which worked over New Year's Eve, says the company didn't use that language in its last 10-K filing when CEO Meg Whitman reversed her ousted predecessor's destabilizing notion of somehow spinning off the company's PC unit, and instead moved printers into it.
Since writing off a ghastly $8.8 billion in late November because of its ill-conceived $11 billion Autonomy acquisition HP has been under Wall Street pressure to shed some of its motley holdings, including PCs and printers.
In the new filing HP warned that "When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives. We may also dispose of a business at a price or on terms that are less desirable than we had anticipated. In addition, we may experience greater dis-synergies than expected, and the impact of the divestiture on our revenue growth may be larger than projected. After reaching an agreement with a buyer or seller for the acquisition or disposition of a business, we are subject to satisfaction of pre-closing conditions as well as to necessary regulatory and governmental approvals on acceptable terms, which may prevent us from completing the transaction. Dispositions may also involve continued financial involvement in the divested business, such as through continuing equity ownership, guarantees, indemnities or other financial obligations. Under these arrangements, performance by the divested businesses or other conditions outside of our control could affect our future financial results."
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