Feeds

Hewlett's “Plan B” gains ground

Greed factor

  • alert
  • submit to reddit

Remote control for virtualized desktops

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. ®

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.