In a clear sign of rejection for HP’s new plan to move out from its PC business, investors wiped out nearly $16bn off the market value of HP.
This was a clear indication that investors lost their confidence in chief executive Leo Apotheker after he announced Autonomy acquisition offer and potential spin-off from its PC and mobility businesses, according to Reuters.
Following these, HP reported a six-year low in its share prices which slumped 20% on Friday.
According to media reports, this spinning off from PC business would lead to consumers rushing to rival companies such as dell for PC purchases.
Investors also raised questions on HP’s offer of nearly $12bn for buying UK based software firm Autonomy Corp saying that the offer was too high.
They are also worried as why HP was dumping its mobile business which it bought for $1.2bn from Palm Inc, reports Reuters.
HP said that as its WebOS-based devices like TouchPad tablet failed to attract buyers, it has already stopped their production and is focusing on high-growth, high-margin opportunities in the enterprise/commercial markets.
HP’s major shake-up of its business is expected to affect other major companies such as Intel, which provides chips for HP computers; and Cypress Semiconductor, which provides touch controllers for HP TouchPad.
