Hewlett Packard (HP) Announced the Spin-Off of Its Agilent Technologies

question 25

Essay

Hewlett Packard (HP) announced the spin-off of its Agilent Technologies unit to focus on its main business of computers and printers. Hewlett Packard provided Agilent with $983 million in start-up funding. HP retained a controlling interest until mid-2000, when it spun-off the rest of its shares in Agilent to HP shareholders as a tax-free transaction. Discuss the reasons why HP may have chosen a staged transaction rather than an outright divestiture of the business.

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Definitions:

Perceptually Prominent

Refers to objects or individuals that stand out in a perceptual field, making them more likely to attract attention and influence observations and behaviors.

Anthropology

The scientific study of humans, human behavior, and societies in the past and present, including cultural, social, and physical development.

Fundamental Attribution Error

The tendency to attribute others' behaviors to their character or personality, while overlooking situational factors.

Group Pressure

The influence exerted by a group on individual members to conform to the group's norms, attitudes, and behaviors.