PracticeConsultingHewlett Packard re-examining PwC deal

Hewlett Packard re-examining PwC deal

IT company Hewlett-Packard has said it is reconsidering every aspect of its negotiations to buy PricewaterhouseCoopers' consultancy wing.

The news came in a speech made by HP chief executive Carly Fiorina in New York during which she hinted HP would be looking for a drop in the asking price.

‘While it’s true that when we confirmed negotiations were under way we were discussing a valuation in the $17 to $18 billion (£11.7 to £12.4 billion) range, given the current market environment we’re re-examining every aspect of the transaction, including price,’ she said.

And she made it clear the deal was far from certain, leaving the way for other bidders to approach PwC.

‘We won’t complete a transaction unless we’re certain that we can provide sufficient return to our shareowners and employees,’ said Fiorina.

Rumours that the deal may be in trouble were sparked by steep falls in the HP share price. Initially analysts believed this might mean HP would have to raise the cash component of the deal, but following Fiorina’s comments it looks less likely HP will be willing to do this.

Earlier this week reports from the US suggested HP shareholders are unhappy about the move for PwC.

Links

HP investors worried over PwC deal

HP may raise cash offer in PwC deal

Hewlett-Packard confirms PwC talks

HP agrees fee for PwC consulting arm

Hewlett-Packard confirms PwC talks

HP in talks for PwC consulting business

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