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Market celebrates as HP CEO resigns

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10th Feb 2005
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Hewlett-Packard chairman and chief executive Carly Fiorina resigned this week over strategic differences with her board of directors.

According to HP's press release, Fiorina commented, "While I regret the board and I have differences about how to execute HP's strategy, I respect their decision. HP is a great company and I wish all the people of HP much success in the future."

HP chief financial officer Robert P Wayman was named chief executive officer on an interim basis and HP director Patricia Dunn was appointed non-executive chairman. An executive search was for a new CEO was set in motion immediately.

Fiorina was the only female chief executive among the companies listed in the Dow Jones index of listed US companies and attracted criticism for the takeover of Compaq. The deal was bitterly opposed by Walter Hewlett and other family shareholders and has so far produced lacklustre results. IBM, by way of contrast, has decided to pull out of the low margin PC industry to concentrate on services and consulting.

Oracle CEO Larry Ellison told an investors' meeting that HP's decision to merge its PC division with its printer business may have been the last straw. On Wall Street, Fiorina's departure sparked a surge 10% in HP's share price, Reuters reported.

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