Hewlett-Packard, which recently announced it is splitting itself into two companies to become more efficient, also is considering lightening its corporate load in China, according to the Wall Street Journal.
Citing people familiar with the matter, the newspaper said H-P has begun sounding out private-equity firms in China on their interest in buying H3C Technologies, HP s networking unit in China. The process is in the early stages and H-P may sell only 51% of H3C, assuming a deal is reached at all, the people said. In a full sale, the business could be worth roughly $5 billion, one of them said.
HP spokeswoman Sarah Pompei declined comment on the story, which speculated that HP was considering cutting its stake in H3C due to growing tensions between the U.S. and China over claims that each has been hacking into the others networks.
Whatever the case, J. P. Morgan analyst Rod Hall wrote his clients Monday that he favors such a deal, because we do not believe H3C adds much strategically to HP.
Photo by Kirstina Sangsahachart, Daily News
