We don’t normal deal in rumour, but the stories about the HP board discussing removing its CEO, Leo Apotheker are all over the ‘serious press’ this morning. See FT HP rises over talk about Apotheker successor. The rumour itself lead to HP’s shares rising nearly 10%. If I was Apotheker I’d be seriously ‘considering my position’ as a result as clearly many now have ‘no confidence’ in him.
A month back on 19th August we wrote a record four articles about the new policies that Apotheker had announced. Our view was that he was wrong. See Leo’s Titanic decisions. The market agreed and wrote HP down another 20%. We also had great doubts about their purchase of Autonomy for a whole host of reasons. See HP & Autonomy – Where are the synergies? Given that it was an incredibly good deal for Autonomy shareholders, I would suggest the remaining 59% who have not accepted the offer will now be rushing to do so before the new 3rd Oct deadline – just in case Apotheker goes and the deal is pulled (although that is pretty difficult for HP to do)
Although we are no supporter of Apotheker, the spotlight today should be on the HP board. What an appalling record of appointment and dismissal of CEOs! HP now look in total disarray. Truly great global brands, and their associated reputations, have been seriously damaged. HP’s customers have relied on it being a strong and stable partner. All that seems to have been thrown out the window.