Axe hanging over HP’s Apotheker, report claims

HP board considers replacing CEO Apotheker with former eBay chief Whitman, sources say

Tags: Hewlett-Packard CompanyUSAeBay Incorporated
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Axe hanging over HP’s Apotheker, report claims HP's share price has lost almost half its value since Apotheker took over
By  Daniel Shane Published  September 22, 2011

Hewlett-Packard, the world's largest IT company, is considering ousting CEO Leo Apotheker after less than a year in the job, it has been claimed.

A report published by Bloomberg this morning, citing two anonymous sources close to the matter, says that HP's board could install former eBay chief Meg Whitman as CEO of the vendor, possibly on an interim basis.

Whitman joined HP as a director in January 2011 following a failed attempt to become governor of California.

The article also reckons that the Paolo Alto firm's board is reconsidering Apotheker's proposal to spin-off or sell HP's $40 billion a year personal systems group. When Apotheker announced the strategy to ditch HP's computer making unit last month, the company's share price tanked by around 20%

HP's stock rose 6.7% to $23.98 following rumours that Apotheker was to be given the chop.

In August, Apotheker also announced HP's intention to acquire British software maker Autonomy for $12.5 billion. According to Bloomberg, due to the nature of the deal it is unlikely that a change in top tier management at HP would prevent it from going ahead.

Since taking the wheel at HP 11 months ago, Apotheker has seen the company's share price plummet by more than 45%. Prior to joining HP, he had a brief stint as CEO of German ERP giant SAP.

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