HP wants to spin off its PC business

MAKER OF EXPENSIVE PRINTER INK HP has added to confusion about what it will do with its PC business by now saying that it wants spin off the unit.

According to Reuters, HP is working on understanding the larger implications of separating the PC business from rest of the company.

An HP spokeswoman said, "We prefer a spin-off as a separate company and the working hypotheses is that a spin-off will be in the best interests of HP's shareholders, customers and employees.

"However, we have to complete the diligence process and validate this assumption, including fully understanding the dis-synergies in separating the PSG business from HP."

Last Thursday, HP strongly denied saying that it planned to quit its PC business, despite having said the previous week that it planned to spin it off or sell it.

We debated whether spinning something off is the same thing as quitting it and, since we assume that means give it to someone else, we assumed that they meant more or less one and the same.

But Paul Hunter, MD for the HP PC business in the UK and Ireland told us in no uncertain terms that we were wrong.

"I'd like to firstly clear up any misunderstanding that has arisen from the earnings announcement around the future of the Personal Systems Group," he said in a letter to our editor.

"There have been a number of incorrect stories saying that HP is quitting the PC business. Let me be absolutely clear in saying that at no stage has HP said it is quitting the PC business. Three options are being investigated, and whether the company is spun off, sold or kept in the HP portfolio, the team in the UK remains committed to creating and supporting great products and services."

HP said the whole process could take 12 months to 18 months, but a final decision about its PC unit is expected by the end of this calendar year. We won't be holding our breath. µ