HP share price jumps after it splits into two businesses
Investors have welcomed HP’s move to split itself into two separate businesses with shares in the tech giant opening five per cent higher.
HP confirmed the restructure, which will give shareholders a stake in both businesses – one housing its computer and printer business, the other its enterprise tech arm – today.
Current chief executive Meg Whitman will take on responsibility for the newly-formed Hewlett Packard Enterprise division.
EVP Dion Weisler is being made chief executive of hardware arm HP Inc, which Whitman will also be chairman of.
Whitman said: “It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders.”
On a call with investors, Whitman said the enterprise arm would focus on investments and acquisitions whilst HP Inc will focus on making returns to shareholders.
The two companies will have almost the same operating profit and margins.
Investors were no doubt buoyed by the split, which will leave both companies open to further potential M&A activity after completion next year.
Here's what HP's share price looks like so far today.
