WSJ: Hewlett-Packard Hires Goldman Sachs to Defend Against Activist Investors (HPQ)

By Staff,

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According to a Wednesday Wall Street Journal report, computer and printer maker Hewlett-Packard Company ( HPQ ) has contracted financial services firm Goldman Sachs ( GS ) to help protect the company against activist investors amid a brutal company shake-up.

Reportedly, Goldman will advise H-P on defense strategies to circumvent potential activist investor intervention. A so-called "poison pill" strategy could be in the works to protect shareholders from an outside investor's attempts to wrest control of the company.

Goldman Sachs did not issue a comment on the story, while H-P simply noted that it has relationships with multiple investment banks for various purposes.

Hewlett-Packard shares rose 64 cents, or +2.8%, in premarket trading Thursday.

The Bottom Line
Shares of Hewlett Packard ( HPQ ) have a 2.07% dividend yield, based on last night's closing stock price of $23.19. The stock has technical support in the $18-$21 price area. If the shares can firm up, we see overhead resistance around the $25-$26 price levels.

Hewlett-Packard Company ( HPQ ) is not recommended at this time, holding a DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: HPQ

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