Samsung Electronics has denied rumours about its plans to acquire PC unit of Hewlett-Packard, which is exploring possibilities to get rid of its hardware business to concentrate on other operations.
"The recent rumors that Samsung Electronics will be taking over Hewlett-Packard Co.'s personal computer business are not true. We hope this clarifies any confusion that may have occurred," an official statement by Samsung reads.
HP announced last Thursday that its board of directors had authorized the evaluation of strategic alternatives for its Personal Systems Group (PSG), including the exploration of the separation of its PC business into a separate company through a spin-off or other transaction. HP's PSG is the leading manufacturer of personal computers in the world and had annual revenues of approximately $41 billion in fiscal year 2010.
Analysts from Technology Business Research were the first to report that Samsung was the company interested most in HP's PC unit back last Thursday. Various web-sites specialized on spreading unofficial information reported about the possible plan earlier this week.
"TBR believes Samsung is one prime candidate to purchase HP’s Personal Systems Group, as it maintains large cash reserves and an established base for component manufacturing. In addition, Samsung’s limited global PC presence, where HP maintains broad traction, presents an added benefit to Samsung making such a strategic acquisition," said Beau Skonieczny, a research analyst with TBR.
HP is implementing a plan to fundamentally transform the company. An important component of the plan is focusing its investments, resources and management attention to drive higher value solutions to enterprise, small and midsize business and public sector customers. HP believes that the exploration of alternatives for PSG will help the company accomplish its strategic goals and pursue profitable growth and enhanced shareholder value. A post-transaction HP would continue to help its customers manage the information explosion and address their most critical needs through a portfolio that spans printing, software, services, servers, storage and networking.
Even though HP's PSG is the largest supplier of PCs in the world, its business is largely a commodity business and thus it may not fit Samsung Electronics.