Leaderless Hewlett-Packard value continues to slide as it settles Hurd suit

Leaderless Hewlett-Packard value continues to slide as it settles Hurd suit

Summary: HP has failed in its challenge to Oracle's employment of its former CEO Mark Hurd...

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TOPICS: Hewlett-Packard
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Hewlett-Packard its suit against Mark Hurd, former CEO of HP and now co-president at Oracle.

HP had filed a civil suit against Mr. Hurd that claimed, "Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others."

HP had to come to a quick settlement because its market value since the departure of Mr. Hurd has continued to slide. It has lost $6 billion or more than 6% in market cap to $89.3 billion, while Oracle has jumped by $22 billion, or 19% to $138 billion over the same period.

It's clear that HP cannot afford a long and protracted disagreement with a key business partner.

The announcement comes at the beginning of the Oracle OpenWorld conference, which attracts tens of thousands of IT buyers to San Francisco.

The settlement certainly appears to be a defeat for HP. In a story about deal making in the current issue of The Deal, JMP Securities LLC analyst Pat Walravens says:

"There is no better executive who understands the competitive landscape than Mark Hurd. Oracle now has a general who has an exact blueprint of the enemies' battle plans."

That can't be good for HP. There is no way that Mr. Hurd can not use his competitive knowledge.


Topic: Hewlett-Packard

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  • RE: Leaderless Hewlett-Packard value continues to slide as it settles Hurd suit

    Check the first paragraph. Something is missing!
    Gis Bun
    • RE: Leaderless Hewlett-Packard value continues to slide as it settles Hurd suit

      @Gis Bun Good.
      Market leadership and further complicated for the giants ..
      HP must be careful not to fall behind.
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      insecao
  • Well here's a little something about your 'hero', Mark Hurd

    http://en.wikipedia.org/wiki/Mark_Hurd"<br><br>[i]"Hurd has a reputation for aggressive cost-cutting. He laid off 15,200 workers 10% of the workforce shortly after becoming CEO. Other cost-cutting includes reducing the IT department from 19,000 to 8,000, reducing the number of software applications that HP uses from 6,000 to 1,500, and consolidating HP's 85 data centers to 6.<br><br>In the recent recession, Hurd imposed a 5% pay cut on all employees and removed many benefits. [b]Hurd himself took a pay cut of 20% in his base salary, although the compensation committee increased his bonus by the same amount.[/b] Following the acquisition of EDS, Hurd instructed that all EDS employees should have their salaries adjusted to match the salaries of their HP counterparts, with pay cuts of as much as 20%."[/i]
    ahh so
    • RE: Leaderless Hewlett-Packard value continues to slide as it settles Hurd suit

      @ahh so
      Scary! Send someone after him. No time to waste. :)
      Luc1an
      • RE: Leaderless Hewlett-Packard value continues to slide as it settles Hurd suit

        @Luc1an
        Hey it's not my fault the guy's a creep.
        ahh so