HP announced on the 6th October 2014, their plans to separate into two new publicly named Fortune 50 companies. The announcements comes as part of HP’s 5 year turnaround plan. HP says by completing the separation, they will be able to accelerate these turnaround plans and also provide long-term value for shareholders.
Hewlett-Packard Enterprise will look after HP’s Business line-up of products including Servers, Networking, Cloud and Storage. President and CEO, Meg Whitman and CFO, Cathie Lesjak will move over to HP Enterprise. The new company will be focused on developing new infrastructure technologies, software and services for the next generation of IT.
HP Inc. will look after HP’s line-up of personal products such as Desktops, Printing and Mobility. Dion Weisler will be the new President and CEO, with Meg Whitman being chairman.
Current HP Shareholders will own shares in both Hewlett-Packard Enterprise and HP Inc. Throughout the separation should be Tax Free for federal purposes. Both companies will continue to use the current HP logo. At present separation is planned to be completed by the end of the 2015 financial year, which is subject to certain conditions.
For more information please visit http://www.hpannouncement.com/