September 22, 2011
Hewlett-Packard may planning to fire its Chief Executive Officer Leo Apotheker less than a year after he took the role, anonymous sources “close to the matter” told Bloomberg. HP Director and former eBay CEO Meg Whitman is rumoured as possible interim successor.
One of the sources added that HP’s board of directors may also be reconsidering its poorly received plans to spin-off its industry-dominating but unprofitable PC division the Personal Systems Group.
Apotheker took on the role at the end of November 2010 following the exit of predecessor Mark Hurd in the wake of an expenses scandal. His reign has so far been a difficult one, and HP stock has reportedly dropped by almost 50 percent since he entered the role.
In particular, last month’s announcement that it was considering spinning off its PC business and would cancel its webOS hardware caused stock to plummet by 20 percent.
A strong indication of investors’ lack of confident in Apotheker came yesterday as Bloomberg reports that rose HP rose by 6.7 percent on the New York Stock Exchange after it broke the rumour of his ouster.
Meg Whitman, who joined HP’s board in January this year, is currently rumoured to be Apotheker’s successor, at least on an interim basis. Whitman was CEO of e-commerce site eBay for 10 years.
HP’s continued troubles have fuelled speculation that the technology giant may be at risk of a hostile take-over, especially from partner-come-rival Oracle, which has reportedly been strongly considering the news.
Categories : World Focus