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HP Just Slammed Dell's Buyout Deal

Tuesday, 5 Feb 2013 | 2:49 PM ET
Michael Dell
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Michael Dell

Hewlett-Packard made it clear Tuesday that it sees Dell's buyout agreement as the perfect opportunity to steal away as many customers as it can from its competitor.

(Read More: Dell Reaches Deal to Be Taken Private by Founder, Silver Lake)

After news of Dell's leveraged buyout plan Tuesday, Hewlett-Packard—which competes with Dell—issued a statement warning customers they would suffer as a result of the plan. HP also said that Dell's "significant debt load" would keep it from investing in new products and would cause its services to be limited.

"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," HP said in a statement. "Leveraged buyouts tend to leave existing customers and innovation at the curb."

The company added that it plans to take "full advantage" of any opportunity created by Dell customers looking to take their business elsewhere.

Read the full statement 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."

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