CCTV Script 03/11/15

– This is the script of CNBC's news report for China's CCTV on November 3, Tuesday.

Welcome to CNBC Business Daily, I'm Qian Chen.

The newly split Hewlett Packard Enterprise and HP will transform its business by helping other firms transform theirs, Meg Whitman said Monday.

Following the split of Hewlett-Packard into two separate publicly traded companies on Monday, Hewlett Packard Enterprise will sell commercial computer systems, software and tech services, and HP Inc. will sell personal computers and printers.

Hewlett-Packard was an early pioneer of what became the model for Silicon Valley start-ups: Founded in 1939 by two Stanford graduates in a Palo Alto, California, garage, HP was long celebrated for its engineering know-how and laid-back corporate culture. It made hefty profits as it grew into a multinational giant that sold a wide range of computer gear and commercial tech services.

But after struggling to keep pace with recent trends like the rise of smartphones and cloud computing. HP's board decided last year to create two smaller companies, each with a narrower focus.

The shares of the two companies, carved out of Hewlett-Packard Co, were trading for the first time since the formal split on Sunday.

HP Inc shares closed up about 13 percent at $13.83 on the New York Stock Exchange, while HPE shares closed down 1.6 percent at $14.49.

Hewlett Packard Enterprise's (HPE) shares rose as much as 3 percent in early trade, before reversing course twice in volatile trading. HPE, with Meg Whitman at the helm, holds the tech pioneer's corporate hardware and services division.

HPE had a market capitalization of roughly $27 billion (£17.51 billion), while HP Inc, led by Dion Weisler, was valued at about $22 billion after the split.

At the same time, Dell announced a deal Monday with MSD Partners and Silver Lake to buy cloud computing company EMC for roughly $67 billion in cash and stock.

The acquisition of EMC is seen helping Dell diversify from the stagnant personal computer market and give it the scale to attack the faster-growing and more lucrative market for managing and storing data for businesses.

And according to Fortune, Re/Code reported that Dell explored a sale of its PC business before signing the EMC agreement, but couldn't find any takers.

Hewlett-Packard CEO Meg Whitman predicted that Dell's $64 billion purchase of EMC will result in "chaos," thus creating a "real opportunity for HP."

[Meg Whitman, CEO, Hewlett-Packard] "ITS QUITE INTERESTING THAT WE HAVE CHOSEN TO DELEVER OUR BALANCE SHEET TO GET SMALLER TO BE MORE NIMBLE AND LEAN IN TO NEW TECH LIKE FASH STORAGE, NETWORKING, SERVERS, ETC...WHILE DELL HAS CHOSEN TO GET MUCH BIGGER LEVER WAY UP AND REALLY CONSOLIDATE AND MAKE A COST PLAY AROUND OLDER TECHNOLOGY."

HP Inc. is the single most logical landing spot for Dell's PC business, as they are number one and number two, respectively, in terms of market share (albeit a sinking market, as Dell's gross profit for the segment fell 26% in the first half of its latest fiscal year). Moreover, Dell still has plenty of reason to sell, since proceeds could be used to pay down the massive pile of debt that it will amass from the EMC merger. Moreover, the EMC deal makes it even clearer that Dell views itself as more of an enterprise tech company than a consumer one.

CNBC's Qian Chen, reporting from Singapore.

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