Hewlett-Packard Plans to Break in Two

Hewlett-Packard Co. plans to break in two, separating its personal-computer and printer businesses from its corporate hardware and services operations, according to people familiar with the matter.

The company plans to announce the move as early as Monday October 6, the people said. It is expected to be effected as a tax-free distribution of shares to the company’s stockholders next year, one of the people said.

The move is one H-P and its investors and analysts have long contemplated. It would come amid a wave of breakups and spinoffs at technology companies and in the wider corporate world, underpinned by the idea that companies with a narrower focus perform better. The moves in many cases have been well-received by shareholders—if not actively sought by them.

Wall Street Journal