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Print 35 comment(s) - last by maugrimtr.. on Feb 11 at 10:10 AM

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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RE: In opinion HP is the worst...
By maugrimtr on 2/11/2013 10:10:16 AM , Rating: 2
The impact on margins will be negligible. Going private simply frees the company from shareholders who are being too volatile in their pricing of its stock and expecting miracles to occur in the short term. It will allow them to make dramatic changes without worrying about all that craziness.

Internally, Dell remains regulated by the government like every other corporation. They will also retain their current reporting needs for internal use (they will want to know if they are making a profit I assume) and to prepare for a future return to the market.

This is far from your attempt to link going private to meaning less regulation and some mythical cost saving. Those sort of costs are significant only to small companies (and yes, small companies should be lightly regulated where it makes sense).


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