HP chairman Carly Fiorina revealed the decision to drop the deal this morning as HP unveiled disappointing annual results that sent shares falling 15% before markets opened this morning.
Fiorina said: ‘We are disappointed that we have not been able to reach a mutually acceptable agreement to acquire PwC’s consulting business. This is a high-quality operation, and we believe the strategic logic underlying this acquisition is compelling. However, given the current market environment, we are no longer confident that we can satisfy our value creation and employee retention objectives — and I am unwilling to subject the HP organization to the continuing distraction of pursuing this acquisition any further.’
She indicated that HP is still looking to expand its consulting wing other than with PwC, who have been locked into discussions to sell the consulting operations for up to $18bn.
She stated: ‘We remain committed to aggressively growing our consulting capabilities, organically and possibly by acquisition, and are open to other business arrangements to achieve our goals.’
The pull-out follows hints last week in New York by the HP chief executive that the US-based global IT giant was looking for a drop in the asking price.
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