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HP looks to unload dead weight by selling off underperforming divisions


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HP Selling Off

Unless a meteor strikes its corporate headquarters, things can only get better for HP (HPQ) in 2013. Bloomberg reports that HP is starting off the new year by taking a fresh look at which company divisions it needs for the future and which ones can be tossed over the side. In the company’s most recent 10-K filing with the Securities and Exchange Commission, it said that it was evaluating “ the potential disposition of assets and businesses that may no longer help us meet our objectives,” which is a strong hint that it wants to unload some underperforming segments. The one problem for HP, however, is that many of its assets could be toxic, especially in light of the company’s recent multibillion-dollar write downs related to its acquisitions of companies Electronic Data Systems and Autonomy. HP acknowledged this reality in its SEC filing by noting that it “may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner.”

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