Hewlett-Packard Considers Sale Of Its H3C Business

Shares of Hewlett-Packard Company HPQ closed Monday’s session up 1.06 percent at $35.30 amid talks that the company is considering the sale of a majority stake of its networking business H3C.

Hewlett-Packard values the company at roughly $5 billion, however, Jefferies analyst James Kisner feels $5 billion valuation is too high. Kisner estimates $2.5 billion to $3.5 billion is a more likely value for H3C.

Analysts find that Chinese firm Huawei is most likely acquirer given its capacity in China.

Lastly, Kisner finds the sale of H3C may add $1 to $2 in value to Hewlett-Packard stock price.