PALO ALTO, Calif. (
, currently weighing the future of its Personal Systems Group (PSG), says that a spinoff of the PC business would be in shareholders' best interests.
"We prefer a spin-off as a separate company," explained a spokeswoman, in an email to
. "The working hypotheses is that a spin-off will be in the best interests of HP's shareholders, customers and employees."
HP prefers a spinoff of its PC business.
The spokeswoman, however, noted that there's plenty of work to do before a spinoff is achieved. "We have to complete the diligence process and validate this assumption, including fully understanding the dis-synergies in separating the PSG business from HP," she explained. "The full process, from decision to implementation, is expected to take 12-18 months, but a final decision on future operating structure for PSG is expected by the end of this calendar year."
Earlier this month, in a kitchen sink of strategic announcements, HP CEO Leo Apotheker confirmed that the firm is looking at "a range of options" for the PC business. These include separating the PSG division through a spinoff or other transaction, he said.
By shifting the company's focus away from the low-margin PC business, Apotheker is keen to open up fresh revenue in higher-margin areas such as software and cloud services.
, which also involves ditching its WebOS devices and the acquisition of U.K. software maker
, who were alarmed by the drastic change in direction. Former HP CEO Carly Fiorina, however, has
, saying that it sets the firm up for the future.
In an interview with
last week, Fiorina pointed to weakening demand in the PC market, noting that HP is wise to focus on more profitable areas in the enterprise market.
HP benefited from a broad, post-hurricane uptick in tech stocks on Monday. The company's shares rose 5.36% to close at $26.15.
--Written by James Rogers in New York
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