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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey E. Klein who wrote (106139)	3/2/1999 11:36:00 AM
From: Dorine Essey	Respond to of 176387

Jeff, DELL already sells HP printers etc. When you purchase a new computer with DELL, they offer HWP products. Dorine

To: Jeffrey E. Klein who wrote (106139)	3/2/1999 11:46:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Jeff: Here is an update of the HP deal,no official announcement yet. Tue, 02 Mar 1999, 11:35am EST Hewlett-Packard Will Reorganize, Split in Two, Wall Street Journal Says Hewlett-Packard to Split Into Two Companies, People Say Palo Alto, California, March 2 (Bloomberg) -- Hewlett- Packard Co., the world's No. 2 computer maker, will unveil a plan to split into two separate publicly traded companies, people familiar with the plan said. The company may separate computers from divisions that make medical devices and testing equipment for semiconductors and other electronics, the Wall Street Journal reported earlier today. Hewlett-Packard is likely to focus on products for the Internet and other fast-growing markets, the Journal said, citing an unidentified person close to the company. Hewlett-Packard has cut workers and spending to boost profit as prices for its printers and personal computers fall. Sales of its testing equipment dropped 14 percent in the fiscal first quarter because of recessions in Asia. The company's shares are little changed from a year earlier, while rival International Business Machines Corp.'s stock climbed 67 percent. Analysts said a split could boost Hewlett-Packard shares, which are halted on the New York Stock Exchange pending news. ''This (split) might help unlock the value,'' said Larry Borgman, an analyst at Josephthal & Co., which rates H-P ''buy.'' Company spokeswoman Anne McGrath declined to comment on the report. An announcement could come after the close of trading today, the Journal said. ''We don't talk about plans that may or may not be under way,'' she said. Slowing Growth Though H-P's first-quarter earnings beat expectations, the company expects lackluster sales growth for the rest of its fiscal year because of a slowdown in some businesses in North America and Europe. ''Their primary issue is generating growth and expense control concurrently,'' said Andrew Neff, an analyst at Bear Stearns & Co., who rates Hewlett-Packard ''attractive.'' While H-P's computer products group, which makes up about 85 percent of sales, increased 3.3 percent in the fiscal first quarter ended Jan. 31, revenue in its much smaller medical- equipment business fell 13.3 percent to $307 million from $354 million. Sales in its test and measurement unit fell 14.4 percent to $919 million from $1.07 billion. Sales of electronic components, fell 9.9 percent to $228 million from $253 million. H-P's total sales rose 1 percent to $11.9 billion from $11.8 billion. Analysts said there's been speculation that the company would sell or spin off its test and measurement and medical equipment units, which don't fit in with its main business of selling computers, printers and Internet products. ''The company's growth rate has been dragged down by the test and measurement business, which is in a recession,'' said Borgman. He said he talked to H-P yesterday and the company didn't mention any plans to split up. In fact, Hewlett-Packard Chairman and Chief Executive Lewis Platt, reached at home this morning, declined to comment. ''I don't have any comment about that,'' Platt said. To cope with slowing growth, the Palo Alto, California-based company has slashed expenses, cut its workforce and put a freeze on hiring. Early Days That's a far cry from the company's early days. Stanford University engineers William Hewlett and David Packard started the company -- and Silicon Valley -- in 1938 in a Palo Alto garage. Hewlett-Packard went on to dominate the market for electronic test-and-measurement equipment and in 1966 built its first computer. The Journal said that H-P hired consulting firm McKinsey & Co. to examine possibilities for the company. The company recently has begun developing devices that consumers can use to harvest information from the World Wide Web. Net income in the three months ended Jan. 31 climbed 3.3 percent to $960 million, or 92 cents a share, from $929 million, or 86 cents, in the year-earlier period, Hewlett-Packard said last month. However, the company also said it expects fiscal 1999 sales growth to be at the low end of its earlier forecast for an 8 percent to 10 percent rise.