HP investor confidence falters
TEXT OF STORY
SCOTT JAGOW: The scandal at Hewlett Packard gets thicker every day. Private investigators, fake identities, spying on people. But the company’s stock has been sailing along — until now. That’s because for the first time, CEO Mark Hurd has been linked to what happened. Here’s Stacey Vanek-Smith.
STACEY VANEK-SMITH: The company’s CEO has been largely credited with HP’s turnaround. Since Hurd was hired last year, HP’s stock has jumped nearly 70 percent.
Now internal e-mails suggest Hurd was in on the scheme.
Securities Attorney Lance Kimmel says that’s making the markets very nervous.
LANCE KIMMEL: The market can’t factor out the fact that if you take away the person who was driving the train during the turnaround, you could well see HP slip back.
Kimmel says Wall Street isn’t necessarily overreacting. There’s a real chance that Hurd could be forced out.
KIMMEL: With the California Attorney General, SEC enforcement, the Department of Justice and Congress itself looking into these matters, I just don’t see how at least one of those groups isn’t going to demand the pound of flesh be extracted.
HP is expected to make a statement later today.
I’m Stacey Vanek-Smith for Marketplace.
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