Summary:

Merrill Lynch, like all good investment bankers is suggesting that it is time to break-up HP. (Just like another Wall Street firm advised AT&T to buy buy and buy, and then disinvest and break-up… god what people are going to do for a few million dollars […]

Merrill Lynch, like all good investment bankers is suggesting that it is time to break-up HP. (Just like another Wall Street firm advised AT&T to buy buy and buy, and then disinvest and break-up… god what people are going to do for a few million dollars in investment banking fees!) Anyway back to the topic at hand.

Two splits are most likely: (1) printers and computers or (2) consumer and enterprise. We suggest the printer/consumer side keep the HP brand name. Computers, which is an amalgam of brands already and is likely to make acquisitions, could use a fresh identity. Experience teaches that focus wins. Resource allocation and mindshare are likely to be enhanced.

At this point, Well, it could help Carly Fiorina complete “Steve Jobs” makeover, and get jiggy with the consumer revolution. And across the valley, Sun Microsystems’ wounded CEO Scott McNealy is yelling – told you so, they are nothing but a printer maker.

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