HEWLETT Packard shares rallied yesterday after a respected analyst upgraded the stock in the wake of a brutal restructuring mooted last week.
Shares in the US computer giant, which is to buy Autonomy in an eye-watering $10.2bn (£6.2bn) deal, gained four per cent, recouping some of Friday’s 23 per cent drop.
As well as announcing the shock move for Autonomy, HP said it will undergo a massive shake-up, axing its struggling tablet and smartphone business and exploring a spin-off of its PC manufacturing arm.
Autonomy also gained 1.4 per cent yesterday, taking its share price to 2,486p, just below the 2,550p offered by HP. Sources close to the deal, which is offering a vast premium to Autonomy’s pre-bid closing price, say it is almost certain to close by the 12 September deadline.
ADVISER: FRANK QUATTRONE
Autonomy is being advised on the mammoth takeover by the man known as the prince of Silicon Valley, Frank Quattrone, through his Qatalyst Partners firm.
The tech-banking heavyweight has shot to prominence again in recent months after working on some of the biggest deals of the first tech bubble.
Earlier this year he acted as adviser to National Semiconductor on its $6.5bn (£4bn) sale to Texas Instruments. Before the HP bid, Qatalyst had played a role in more than $10bn worth of technology deals in 2011, according to Dealogic.
Working alongside Quattrone are highly-rated San Fransisco-based bankers Jonathan Turner, Ian MacLeod and Brian Cayne. In the London office is Jean Tardy-Joubert and Nadja Gehriger.
Barclays Capital and Perella Weinberg are acting as joint financial adviser and corporate brokers to HP.