Posted on: Wednesday, December 8, 2004

HP board rejected company breakup 3 times

By Rachel Konrad
Associated Press

SAN JOSE, Calif. — Hewlett-Packard Co.'s board of directors considered on three separate occasions whether to break up the company, but each time unanimously concluded it would be best to keep HP together, HP chief executive and chairman Carly Fiorina said yesterday.

Fiorina, who spoke at a twice-yearly financial analyst meeting in Boston, did not say when directors at the Palo Alto, Calif.-based computer giant debated a breakup.

Her remarks came in response to a question by Merrill Lynch technology analyst Steven Milunovich, who asked whether breaking up the company would provide greater returns to shareholders.

HP's current business operations encompass laptops and servers, business consulting services, and printers and ink — by far the company's most lucrative division.

Wall Street analysts have speculated in recent months that spinning off the printing division could be a windfall for stock owners and senior executives on both sides of the company.