Well that didn’t take long. HP is come out and slung the corporate mud at Dell and has said that they will have significant struggles based on their debt load by going private.
In short, HP believes that by going private, Dell will be unable to innovate because of the debt it has and will leave existing customers at the curb. Strong words from HP, who in the same breath, offered up that it will happily accept any disgruntled Dell customers.
HP’s full statement is posted below.
"Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell"s ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell"s customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity."
While the future of Dell will change significantly by becoming a private corporation, we should point out that HP is not a strong horse either and that they have made a few mistakes in the past as well.
Instead of flinging mud around the market, maybe, just maybe, HP should start thinking about all of those acquisitions it has made that have failed miserably and realize that they are not a saint either.
Source: MarketWatch