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News > International
Hewlett seeks cheaper PwC
November 1, 2000: 5:31 a.m. ET

Report: HP boss wants to cut PwC's valuation to $15 billion
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LONDON (CNNfn) - Hewlett-Packard Co., the world's No. 3 computer maker, may walk away from a deal to buy PricewaterhouseCoopers' global technology and consultancy business unless the price is slashed, according to a report on Wednesday.

HP (HWP: Research, Estimates) Chief Executive Carly Fiorina said the company was studying all aspects of the proposed deal with PwC, the Financial Times reported.

graphic"While it's true that when we confirmed negotiations were underway we were discussing a valuation in the $17 billion to $18 billion range, given the current market environment we're re-examining every aspect of the transaction, including price," Fiorina said in a speech in New York.

Since HP confirmed talks in September, its share price and others in the technology and consultancy sector have fallen sharply. HP's shares closed at $46.50 on Tuesday, some 23 percent below their level when the announcement was made.

People close to the talks told the FT the cash component of the transaction, originally meant to make up half the merger proposal, could be raised to preserve the deal, but HP is looking for a price close to $15 billion.

Still, HP hopes to conclude the deal by the end of the month, the newspaper reported, and may be persuaded to stump up more cash because it could get a $4 billion tax saving from the way the deal is structured. Back to top

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