To All,
Another CPU's spin-off clue from HWP.
CBS MarketWatch - Hewlett-Packard breaking up business 3-2-99
Hewlett-Packard (HWP) said one of the companies will focus on computer products for which the tech giant is best known, while the other will include H-P's test-and-measurement, components, chemical-analysis and medical businesses. H-P, based in Palo Alto, Calif., is considering an initial public offering of 15 percent of the test-instrument firm's shares by September or October, the company said. Each H-P shareholder will have a stake in both companies. If it receives the OK from tax and regulatory agencies around the world, H-P said the change in its business will probably close in the first half of 2000.
Executives said there is "some slight question" with regard to the IPO, partly based on how the stock market performs. H-P is not ruling out offers to buy segments of the business, but right now the company sees the stock offering as the best way to go, executives said.
If the IPO does occur, the rest of the shares will be given tax-free to H-P shareholders, according to the company.
"We are taking this action to sharpen the strategic focus of our businesses, improve their agility and increase their responsiveness to customers and partners," Platt said in a press release.
Shares of Hewlett-Packard, a component of the Dow Jones Industrial Average, jumped 2 3/4 to close at 68 5/8. Shares traded as high as 73 1/2 during the day but pared gains as tech stocks tanked.
Updated: 3/2/99 4:48:26 PM ET
Best wishes
James
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