Meg Whitman Wants to Fix and Rebuild HP, Not Break It Up (Video)
Well, now we know a little about why shares of Hewlett-Packard ticked northward in the final hour of trading yesterday. It’s not that anyone got an early look at HP’s surprisingly positive earnings report; it’s that word got out among traders that CNBC’s David Faber was at HP headquarters in Palo Alto, Calif., preparing for an interview with CEO Meg Whitman.
That in turn triggered speculation that HP might be planning something special. Persistent rumors that HP is reconsidering the breakup option refuse to die, fanned in no small part by a sketchier-than-an-art-class report from Quartz. Word that Faber was on the scene as the earnings report crossed the wires led some traders to wonder if a breakup announcement was imminent.
Nothing could be further from the truth. The interview with Whitman happened early this morning, and she batted those rumors away once again: “I am convinced that we should not break up this company.” In the end, though, it’s going to come down to the turnaround strategy in place and the financial results that it yields. If it doesn’t work out, then naturally all options are on the table.
It’s also worth noting that HP shares are up by more than 15 percent today, and rose above the $19 mark for the first time since August. If nothing else, yesterday’s results have given shareholders hope that there is a light, however faint, far, far at the end of HP’s tunnel.
Anyway, it’s worth watching the interview, which lasts about 11 minutes: