Old HP sets breakup example for new HP 19 Sep 2013 Agilent is considered by Silicon Valley veterans as the “real Hewlett-Packard.” Spun off in 1999 with the company’s original testing products and research DNA, it has outperformed its former parent and is now splitting to create yet more value. HP can learn from its progeny.
Dell hell concludes, lessons probably unlearned 12 Sep 2013 Shareholders have finally approved the $25 bln buyout by founder Michael Dell and Silver Lake. It carried more than its fair share of ridiculousness. Overconfidence and delay got the better of both sides – and speculators succumbed to their overactive imaginations.
Apple gives finger to the skeptics 10 Sep 2013 New plastic and gold iPhones arrived with software, speed and camera upgrades. In lieu of a watch or TV, biometric security features provided the wow factor. Though the bottom-line benefits for Apple aren’t immediately clear, it may have just started a mobile payments revolution.
Apple event more likely evolution than meteor 9 Sep 2013 Investors and the tech giant’s fans are clamoring for a hit new gadget on Tuesday – a watch, a TV or something else. History and rumors suggest they may have to settle for improvements to existing devices. Financially, a deal to sell iPhones through China Mobile could matter more.
Carl Icahn won’t have the last tweet on Dell 9 Sep 2013 The billionaire has conceded defeat in his effort to block Michael Dell’s $24 bln buyout of the PC maker. Icahn may still profit, and his broader record is strong. But his Dell logic did not compute. And his recent punt on Apple is a better ad for his self-promoting parting shot.
Big Blue’s earnings engine makes sputtering sounds 20 Aug 2013 IBM is hell-bent on boosting earnings to $20 a share in 2015. Pressing on the accelerator of job cuts, software M&A and select disposals has worked well to a point. But falling sales point to a hole in the gas tank. And the company’s speedometer may be faulty, anyway.
Michael Dell tries to crush passive resistance 24 Jul 2013 The minuscule increase in price for his eponymous computer company won’t win many shareholder votes. But he and backer Silver Lake want the board to stop treating abstentions as rejections. If adopted, investors wanting to scupper Dell’s buyout would have to vote against it.
Apple overcomes China blues for now 24 Jul 2013 One of the tech giant’s most reliable engines for growth has been Chinese demand. It flamed out last quarter, however, with revenue from the Middle Kingdom shrinking 14 percent. Solid U.S. sales helped compensate, but Apple will need new products if it wants to shine again.
Dell shareholders get time to come to their senses 18 Jul 2013 With the vote on a $24 bln buyout too close to call, the PC maker put off the decision for a week. The hope of a sweetened bid from Michael Dell and Carl Icahn’s eleventh-hour lobbying proved too alluring. Sleeping on it a bit more, though, should make Dell’s hard reality clear.
Microsoft needs focus, gets bigger org chart 11 Jul 2013 Boss Steve Ballmer says the software giant must speed up and focus on what customers want. That at least is the gist of two sprawling memos justifying a sweeping restructuring. Yet the Microsoft organization now looks more complex. And the company is vague about its purpose.
Key proxy adviser accepts Dell bid reality 8 Jul 2013 ISS could have backed Carl Icahn’s opaque alternative rather than support the $24.4 bln bid from Michael Dell and Silver Lake. But given negative news since the deal surfaced in February, the founder’s bid – despite potential conflicts – is the percentage choice for shareholders.
Microsoft’s bucket list needs more realism 21 Jun 2013 The software giant dreamed of “Windows everywhere” in its youth. Now, the firm seems to be racking up experiences while it still has strength. It has decided not to take on Amazon. But retail stores and smartphones remain on the cards. A narrower focus could prove more rewarding.
Dell’s board neatly paints investors into corner 5 Jun 2013 The special committee has shown persuasively why shareholders should back the $24.4 bln buyout by Silver Lake and Michael Dell and why Carl Icahn’s rival offer fell short. But majoring on how badly the company is doing is a hostage to fortune if the deal does get voted down.
Apple’s design ethos would help fix U.S. tax code 21 May 2013 When barraged with tough questions from senators, CEO Tim Cook held the line. He admitted the company needed a complex tax strategy to remain globally competitive, but also offered a sensible compromise. Why not make the American tax code as minimalist as the iPhone?
Cisco stock luxuriates in low expectations 16 May 2013 The networking giant’s quarter to April was only mediocre. But boss John Chambers said the economic outlook is better, margins aren’t shrinking and sales are rising as expected. The stock rocketed more than 10 pct. At that rate, truly good news could make the CEO look a hero.
Apple iOUs may need to be as desirable as iPhones 26 Apr 2013 Right now, money managers are gaga for the company’s bonds even though they are sure to deliver stingy returns. But up to $55 bln of issuance over three years is on a par with huge borrowers like banks. To be sustainable, that would call for Apple’s category-creating magic.
$50 bln buyback hike one sign of Apple middle age 23 Apr 2013 The company is slowing down a bit, with margins slipping as rivals’ gadgets catch up. But Apple still has plenty of spring in its step, selling 65 pct more iPads in the March quarter than a year ago. And its absurd financial comfort means it can give much more back to investors.
Apple’s Chinese apology worth the loss of face 1 Apr 2013 Today’s prosperous iPad buyers in China may not be swayed by what seems to be state-orchestrated criticism. But the tech giant’s admission of arrogance is a cheap salve to future, less well-informed buyers who might, as the Apple CEO hopes, make the PRC his biggest market.
Dell blow-by-blow makes rival bidders’ jobs harder 1 Apr 2013 The PC maker has laid out, at length, its reasoning for agreeing to a $24.4 bln buyout by Michael Dell and Silver Lake. It’s only the company’s version, but Dell seemingly did pretty much all it could to secure the best offer available. A bidding war now looks even less likely.
Potemkin Dell fight would have optical merits 27 Mar 2013 Even if Blackstone doesn’t buy the PC maker, bidding against Silver Lake at least looks like rivalry in LBO-land, undermining allegations of collusion. Dell’s board also comes off as rejecting the bad J Crew precedent. A phony battle just won’t help shareholders much.