H-P (HPQ) Stock Falls After Reportedly Dropping Computer Sciences Deal

NEW YORK (TheStreet) -- Hewlett-Packard (HPQ) shares are down 0.51% to $33.13 in morning trading on Friday following reports that the company was nearing an acquisition deal with Computer Sciences (CSC) last month that never came to fruition. 

The company would not confirm the reports with CEO Meg Whitman telling Bloomberg, "We talk to a lot of people, a lot of the time, but I can't comment on this one specifically."

The purchase of the IT services provider, which has a market cap of about $9.6 billion, would have been the largest for HP since 2011 when it purchased Autonomy for $10.3 billion.

The company took an $8.8 billion write down just a year after the purchase due to what it described as "serious accounting improprieties" that artificially inflated the database search technology provider's value.

Computer Sciences has been a takeover target of several companies for years, according to Bloomberg.

Computer Sciences stock is also down 0.21% to $67.57.

TheStreet Ratings team rates HEWLETT-PACKARD CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate HEWLETT-PACKARD CO (HPQ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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