Feeds

Hewlett's “Plan B” gains ground

Greed factor

  • alert
  • submit to reddit

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.