H-P Sets Restructuring That Splits Company Into Two Public Entit

Published: 4 March 1999 y., Thursday
Hewlett-Packard Co. announced plans to break the computer giant into two separate publicly traded entities, splitting its old-line measurement business apart from its printer and computer business. In an announcement made near midday Tuesday, H-P said it would consider holding an initial public offering for 15% of the measurement company later this year, with the rest of the shares distributed tax-free to current H-P shareholders after the IPO. Eliminating the "confusion of having these [businesses] under one roof outweighs the synergies of having them together," said Louis E. Platt, chairman and CEO of H-P. The Palo Alto, Calif., company said the split-up wouldn_t result in any significant layoffs. The new measurement company will comprise H-P_s test-and-measurement, components, chemical-analysis and medical businesses. These businesses represented $7.6 billion, or 16%, of H-P_s total revenue of $47.1 billion in fiscal 1998. H-P said the new company would be focused on high-growth sectors such as communications and life sciences.
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