Report - HP denies EDS is for sale

HP rebuffs reports that it has explored options to sell its 110,000-strong outsourcing arm

HP has scotched rumours that it has been touting its EDS outsourcing business to potential private equity buyers.

According to CRN US, the IT one-stop shop, HP has mooted a potential sale of the 110,000-strong unit, which it acquired for $13.9bn (£8.6bn) in 2008, as it looks to shore up its balance sheet.

CRN US cited unnamed sources, but a spokesperson for HP Enterprise Services denied that chief executive Meg Whitman and the HP board were exploring options for EDS.

"HP is not having, nor has it had, discussions about selling its Enterprise Services business," the spokesperson told the publication. "HP is 100 per cent committed to Enterprise Services and will discuss its plans for this business on 3 October at the company's Securities Analyst Meeting."

The EDS buy came under the watch of former chief executive Mark Hurd but HP last month wrote down $8bn from the deal.

CRN US' sources suggested EDS is the only unit HP could easily break out to raise cash, as it had not been tightly integrated with the wider firm.

If true, the development would be the latest twist in a hectic two years for the firm, which has seen it swap chief executives twice, bet big on software with its Autonomy acquisition and perform a U-turn over the decision to potentially sell or hive off its PC arm.

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