*HOT NEWS*HP’S CEO (C.FIORINA) FIRED

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*HOT NEWS*HP’S CEO (C.FIORINA) FIRED

 user 2005-02-09 at 10:18:00 am Views: 129
  • #10150

    Hewlett-Packard Ousts CEO Carly Fiorina

    SAN FRANCISCO (Feb. 9,05) – Carly Fiorina, one of the world’s
    most powerful business women, was ousted as chairman and chief executive of
    Hewlett-Packard Co. on Wednesday after disagreements over strategy at the
    computer and printer maker.

    Analysts said Fiorina’s departure would be good for HP, and
    the company’s shares jumped more than 11 percent in pre-market trading.

    ”This is a good move for the company. I would say there
    will be a boost to employee moral because internally people had become
    frustrated, certainly within the printing division,” said Shannon Cross, a Wall
    Street analyst with Cross Research who tracks the printing industry.

    Peter Sorrentino, chief investment officer of Bartlett
    & Co. in Cincinnati, also expressed relief at the management change.

    ”This was a move that we had long hoped they would take.
    We thought the stock, just from the imaging business, is worth $24 a share, and
    you were being impaired as a shareholder because of the other businesses,” he
    said.

    Fiorina, 50, who joined HP as CEO in 1999, became the
    lightning rod of criticism among investors and some in the Silicon Valley
    establishment for pushing through a merger with rival PC maker Compaq Computer
    in 2002.

    ”While I regret the board and I have differences about how
    to execute HP’s strategy, I respect their decision,” Fiorina said a statement.
    ”HP is a great company and I wish all the people of HP much success in the
    future.”

    Shares of HP, a component of the Dow Jones industrial
    average, rose $2.30 to $22.44 in pre-market trade on the Inet electronic
    brokerage system.

    Robert Wayman, HP’s chief financial officer, was named CEO
    on an interim basis and appointed to the board of directors of HP. Wayman rose
    through the ranks at HP after joining the company in 1969.

    HP said a search for a new CEO was underway.

    Patricia Dunn, vice chairman of Barclays Global Investors
    and a member of HP’s board since 1998, was named non-executive chairman of the
    board.

    MERGER HEADACHES

    Critics of the merger with Compaq, including family members
    of HP founders William Hewlett and David Packard, decried the merger, argued
    that it diluted the value of HP’s crown jewel, its profitable printer and
    imaging business.

    ”The fact that everything is back on the drawing board,
    with respect to (spinning off) the printer business, makes the stock more
    attractive,” SG Cowen analyst Richard Chu said.

    Sorrentino said, ”HP has never had a cost-effective model
    in terms of the PC business, they’ve frittered away their lead in imaging, and
    their move to services never really panned out even with the addition of
    Compaq,” he said.

    Cross said the Compaq deal failed to provide the results
    promised at the time of the merger and HP’s stock has languished since then.

    HP also suffered from failed execution, which meant that
    quarterly results were inconsistent, leading to several sharp sell-offs in the
    shares in recent years.

    _______________________________________________________

    SAN FRANCISCO (Feb. 9) – Hewlett-Packard Co. on Wednesday
    ousted Chairman and Chief Executive Carly Fiorina, one of the most powerful
    women in business, after disagreements with the company’s board over
    strategy.

    Shares of HP, a component of the Dow Jones industrial
    average, rose $2.30, or 11.4 percent, to $22.44 in pre-market trade on the Inet
    electronic brokerage system following news of Fiorina’s departure.

    ”While I regret the board and I have differences about how
    to execute HP’s strategy, I respect their decision,” Fiorina said a statement.
    ”HP is a great company and I wish all the people of HP much success in the
    future.”

    Robert Wayman, HP’s chief financial officer, was named CEO
    on an interim basis and appointed to the board of directors of the computer and
    printer maker. Wayman rose through the ranks at HP after joining the company in
    1969.

    The company said a search for a new CEO was underway.

    Patricia Dunn, vice chairman of Barclays Global Investors
    and a member of HP’s board since 1998, was named non-executive chairman of the
    board.

    Fiorina, who joined HP in 1999, became the lightning rod of
    criticism among investors and the Silicon Valley establishment for pushing
    through HP’s merger with Compaq Computer in 2002.