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HP calls Dell’s go-private strategy a “tough road ahead”

HP calls Dell’s go-private strategy a “tough road ahead”

Claims Dell's ability to invest in new products and services will be extremely limited

In the wake of Dell's announcement to be taken private by Michael Dell and Silver Lake for $US 24.4 billion, rival PC maker Hewlett Packard (HP) issued a statement claiming the move will not prove good for its customers.

"Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell's ability to invest in new products and services will be extremely limited,” HP said in a statement.

“Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell's customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity."

Hewlett-Packard recently regained its top position in the worldwide PC market, displacing rival Lenovo.

HP has also faced declines in its PC business and has previously said it will be paring down its PC business and refocusing on tablets.

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