Hewlett-Packard Returns to the Drawing Board

Hewlett-Packard (NYSE:HPQ) may not go ahead with its plan to sell or spin off its PC business. Turns out costs could exceed the benefits from the move, according to a report by the WSJ.

The absence of the PC business may in fact have negative repercussions such as H-P’s volume clout with component suppliers, supply chain complications, and reduced margins on business lines such as servers.

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HP CEO Meg Whitman is reportedly considering a slew of options placed before her by Jeffries Group (NYSE:JEF). Advisory includes making peace with Oracle (NASDAQ:ORCL), enhancing relationships with SalesForce (NYSE:CRM) and Microsoft (NASDAQ:MSFT), re-engineering PC designs and user interfaces, or make a commitment to mobile devices.

HPQ (NYSE:HPQ) is trading at $25.87 today, down 0.19%. Shares are down 37.32% in one year. The stock’s trading range for the year is between $21.50 and $49.39.

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