HP to Keep PC Division

PALO ALTO, Calif. ( TheStreet) -- HP ( HPQ) will keep its PC division, the company announced on Thursday, after spending the last few months considering a spinoff of its computer business.

"HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It's clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees," explained HP CEO Meg Whitman, in a statement released after market close.

HP CEO Meg Whitman

Shares of HP rose 23 cents, or 0.85%, to $27.22 in extended trading.

The possible PC spinoff, one of a host of strategic changes announced by the company's former CEO Leo Apotheker earlier this year, proved unpopular with investors. Ultimately, the strategy contributed to Apotheker's ouster last month.

Former eBay ( EBAY) CEO Whitman promised to make some sense of the issue when she came in as Apotheker's surprise replacement. HP had originally planned to make a decision on its PSG business by the end of this year, but Whitman vowed to speed up the process.

--Written by James Rogers in New York

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