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From glass house, HP stones Dell's "tough road" to privatization

In the wake of Dell, Inc. (DELL) founder Michael Dell confirming rumored plans that the computer giant was going private, embattled rival Hewlett-Packard Comp. (HPQ) was swift to blast the move.

In a press release HP sniped:

Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers... [Dell's] ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb.

The company also took aim at Dell's "significant debt load" and suggests that it is eager to execute "plans to take full advantage" to poach Dell customers "eager to explore alternatives."

The statement seems a bit comedic coming from HP, whose shares have fallen 66 percent in the past three years.  HP has floundered in the mobile era, eventually abandoning ship on smartphone efforts.  It's fired or forced out two chief executives in the past three years, and its most recent executive, former eBay, Inc. (EBAY) CEO Meg Whitman has cut the company's outlook three times already, since she took over in Sept. 2011.

The statements are not HP's first flamboyant comments in recent months.  Since Ms. Whitman took over the company seems to be relishing its role as a melodramatic attention-seeker.  Most recently it engaged in a war of press-releases with former Autonomy CEO Mike Lynch, whom HP is alleging committed financial fraud.

Expect more groan worthy releases to land in months to come, as HP continues to lash about.

Source: HP



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Short Sighted
By othercents on 2/6/2013 4:27:50 PM , Rating: 2
At this point HP could undercut the Michael Dell bid to take DELL private and purchase them out from under him. This would both propel their PC market share and take a competitor off the market.




RE: Short Sighted
By Flunk on 2/6/2013 4:46:29 PM , Rating: 2
I don't think anyone is that hot to own such an unprofitable margin these days. Besides, who's to say Acer, Samsung, ASUS or Lenovo wouldn't end up taking over from Dell.


RE: Short Sighted
By ritualm on 2/7/2013 12:14:21 AM , Rating: 2
quote:
At this point HP could undercut the Michael Dell bid to take DELL private and purchase them out from under him. This would both propel their PC market share and take a competitor off the market.

Man, I can smell the e-fumes of anti-competition straight from the network closet!

Fat chance of HP swallowing Dell whole, but when it does, I will feel a lot more comfortable buying my IT and networking gear from the Chinese PLA than anything stateside.


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