Feeds

Hewlett's “Plan B” gains ground

Greed factor

  • alert
  • submit to reddit

Build a business case: developing custom apps

Walter "Plan-" B Hewlett appears to be winning support for his plan for HP to abandon the Sircam merger, spin-off the printing division, and release Carly somewhere over the Himalayas.

An institutional investor, Brandes Investment Partners, likes Hewlett's "spin-off and eject" plan so much it's swinging its voting shares, 1.27 per cent of the eligible votes - against the merger.

It's more symbolic than substantial, but it is an ominous sign. If more Wall Street investors warm to the Hewlett alternative, the vote could swing decisively against Fiorina and Capellas.

Hewlett's plan is terrific, until you get to the punchline, which involves spinning off HP's printing and imaging division. This would see much of the rest of HP, which is subsidized by the printing revenue, looking highly vulnerable to dismemberment. It's hard to see its PC division lasting too long, for example.

But the Wall Street vultures, asset strippers and underwriters who filled their pockets during the bubble economy IPO mania, love a lucrative spin-off. Which is how Hewlett's plan could prove to be so cynically effective.

HP's corporate spin took a stumble last week, with a furious ad hominem attack on Walter B Hewlett's inconsistencies. This attack forgot the basic principle (in soccer, anyway) of "take out the ball, not the man".

The voters don't really care if Hewlett had a plan last week, and has one this week. They know he won't be running the company. By contrast, Hewlett's tactic of painting huge dollar signs in front of the investors' eyes appears to be one that's far more likely to win mindshare, as it appeals to pure, instinctive greed. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.