Hewlett-Packard Shares Rally on Icahn-Buying Rumors

by Christopher Freeburn | December 10, 2012 11:49 am

Hewlett-Packard Shares Rally on Icahn-Buying Rumors

Hewlett Packard building Tunisia630 300x153 Hewlett Packard Shares Rally on Icahn Buying Rumors[1]Shares of Hewlett-Packard (NYSE:HPQ[2]) surged about 4% in Monday morning trading after rumors circulated that an activist investor might take a stake in the struggling computer equipment maker[3].

Hewlett-Packard told at least one media outlet that it had not communicated with Carl Icahn and was unaware of any share purchases by the billionaire, Forbes noted.

The company’s shares have fallen 44% this year in the wake of missed quarterly earnings and declining PC sales. In May, the company announced plans to trim its workforce by 27,000.

Last month, it revealed that it had uncovered improper accounting practices at U.K.-based Autonomy, which it purchased for $10 billion in 2011. That followed massive write downs from its 2008 acquisition of Electronic Data Systems. The revelations have led to a class-action shareholder lawsuit that accuses senior management of concealing financial problems from investors[4].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/Hewlett_Packard_building_Tunisia630.jpg
  2. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  3. an activist investor might take a stake in the struggling computer equipment maker: http://www.forbes.com/sites/ericsavitz/2012/12/10/hp-spikes-on-rumors-carl-icahn-buying-a-stake/
  4. concealing financial problems from investors: http://investorplace.com/2012/11/hewlett-packard-shareholder-sues-company/

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