An anonymous source told The Wall Street Journal that some U.S. tech companies have expressed interest in purchasing Autonomy Corp. and EDS from Hewlett-Packard Company (HPQ). Thus far the company’s CEO hasn’t expressed interest in selling, although it isn’t out of the realm of possibility because the company did say in a regulatory filing recently that it might divest some of its businesses in the near future.
Hewlett-Packard Company (NYSE:HPQ) has reportedly received offers for two businesses it has acquired in recent years. Interest in Autonomy Corp. and EDS has been expressed by various tech companies in the U.S., according to anonymous sources cited by The Wall Street Journal. Autonomy is the company that has given Hewlett-Packard so many headaches since allegations regarding improper accounting practices surfaced. The company acquired Autonomy in 2011 and EDS, a tech services company, in 2008.
The sources cited by The Wall Street Journal said Hewlett-Packard Company (NYSE:HPQ) CEO Meg Whitman isn’t selling, although the company did note in a regulatory filing recently that it might divest some businesses that don’t help it meet its objectives any longer. The source also said it’s unclear if EDS can even be separated out of the company’s current operations in order to be sold off. However Autonomy might be easier to sell because it is a newer acquisition for the company.
Shares of Hewlett-Packard Company (NYSE:HPQ) are up more than 2 percent in afternoon trades, a welcome increase as shares have fallen steadily over the past year. Within the last two years, the value of the company’s stock has dropped 64 percent.
One of the reasons shares of Hewlett-Packard have fallen so far is because of the scandal involving Autonomy. It has been alleged that Autonomy’s accounting practices were misleading, although the company’s former CEO denies it. Nonetheless Autonomy does still have plenty of customers, which could make it an attractive choice for tech companies looking to get into the creation of business software.