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HP board approves split into two

By Reuters
US, 02 Oct 2015

Hewlett-Packard said its board had approved the previously announced split of the company into two separate listed entities - computers and printers, and corporate hardware and services.

Hewlett-Packard said yesterday it expected its split into Hewlett Packard Enterprise and HP to be completed on 1 November.

A day later, Hewlett-Packard Enterprise, comprising the corporate hardware and service business, will start trading on the New York Stock Exchange under the ticker symbol "HPE".

Hewlett-Packard, which will be renamed HP and comprise the computers and printers business, will continue to trade under its current ticker symbol.

Hewlett-Packard shareholders will get one share of Hewlett Packard Enterprise for each share held as of 12 October.

The tax-free distribution will be on a pro-rata basis, the 75-year-old company said.

Hewlett-Packard announced the split in October 2014 after years of struggling to adjust to the post-PC computing era.

Hewlett-Packard said it expected Hewlett Packard Enterprise to start trading on a "when issued" basis on or around 19 October under the ticker symbol "HPE WI".

Hewlett-Packard shares were unchanged at $25.61 in pre-market trading yesterday.

Up to Wednesday's close, the stock had fallen about 27% since 3 October, the last trading day before the company announced the split.

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