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.
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