HP scraps $18bn PwC merger

NEWS HP blamed "market conditions" on its decision to terminate the merger, and said that it did not want the organisation to be "distracted" by trying to take the deal further. The cost of the merger was thought to be prohibitive, as HP's shares have slumped over 20 per cent since the merger was first announced. Carly Fiorina, chairman, president and chief executive officer of HP, hinted that the deal was in jeopardy earlier this month. She said today in a statement: "We are disappointed that we have not been able to reach a mutually acceptable agreement to acquire PwC's consulting business... Given the current market environment, we are no longer confident that we can satisfy our value creation and employee retention objectives -- and I am unwilling to subject the HP organization to the continuing distraction of pursuing this acquisition any further." She did not rule out other acquisitions going forward, and added that HP remains committed to bolstering its consultancy offering. HP also reported 17 per cent revenue growth in its fourth fiscal quarter. Profits missed expectations.