After The Bell Big Announcement: HP To Acquire 3Com
After the close, tech giant Hewlett-Packard announced it will acquire networking provider 3Com for $2.7 billion in an all-cash deal.
3Com shareholders would get $7.90 per share, a 39 percent premium from today's close, while the merger would expand H-P's networking offerings to compete more with Cisco Systems.
3Com began trading shortly after the announcement at $7.69, up from $5.69 at the close.
Concurrently, Hewlett-Packed announced better-than-expected preliminary Q4 earnings ($1.14 vs. $1.11 consensus), propelled by "significant growth in China."
Guidance for Q1 2010 is also ahead of estimates, while the Dow component also raises its full-year 2010 earnings and revenue forecast.
Add this on to positive comments from IBM recently, and there is little doubt that tech orders are improving.
But is it enough? HPQ has DOUBLED since the March bottom (from $25 to $50), and is not far from its all-time high of $68 in July 2000.
- The Dow 30 in Real Time
- Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash
- HP Raises 2010 Outlook
- The CNBC Stock Blog
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