Business Insights
  • Home
  • Crypto
  • Finance Expert
  • Business
  • Invest News
  • Investing
  • Trading
  • Forex
  • Videos
  • Economy
  • Tech
  • Contact

Archives

  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • August 2023
  • January 2023
  • December 2021
  • July 2021
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Business
  • Crypto
  • Economy
  • Finance Expert
  • Forex
  • Invest News
  • Investing
  • Tech
  • Trading
  • Uncategorized
  • Videos
Subscribe
Money Visa
Money Visa
  • Home
  • Crypto
  • Finance Expert
  • Business
  • Invest News
  • Investing
  • Trading
  • Forex
  • Videos
  • Economy
  • Tech
  • Contact
At Hewlett Packard Enterprise, CEO Antonio Neri is negotiating with an activist investor with a history of forcing out chief executives
  • Finance Expert

At Hewlett Packard Enterprise, CEO Antonio Neri is negotiating with an activist investor with a history of forcing out chief executives

  • July 6, 2025
  • Roubens Andy King
Total
0
Shares
0
0
0
Total
0
Shares
Share 0
Tweet 0
Pin it 0

It was first publicly reported in April that the activist investor group Elliott Management had taken a $1.5 billion stake in Hewlett Packard Enterprise (HPE), and since then there has been nothing but complete silence on the issue from both companies.

The investment—known to be a long position as opposed to a short bet against the company—is an acute one for HPE and its CEO, Antonio Neri. Fourteen chief executives have been forced out of their jobs after Elliott took a stake in their companies and demanded talks with their boards, according to Reuters. 

Is Neri’s neck on the chopping block?

Fortune asked both companies for comment, but neither wanted to talk on the record about what is going on between them. HPE (No. 143 on the Fortune 500) provided a brief statement that said “we value the constructive input of all of our shareholders” but declined to go into specifics.

However, sources who talked to Fortune pointed to several clues, hiding in plain sight, about what Elliott potentially wants from HPE.

Pricing screwup

The most obvious sign of trouble occurred when HPE published its Q1 earnings in March, which tanked its stock by nearly 16% on the day. Neri gave an interview on CNBC in which he admitted that the company had made a mistake in accounting for the cost of its inventory, which hurt the profitability of the company.

“Near the end of the quarter, we realized that the cost of our inventory was slightly higher than the cost that we had in the pricing. That’s on us. That should never happen,” Neri said.

That was an understatement. The screwup wiped more than $3 billion off HPE’s market cap.

Underperforming stock

It also drew attention to HPE’s share price.

On the day the news broke that Elliott wanted influence over the company, JPMorgan analyst Samik Chatterjee and his team published a research note that said Elliott was probably “1) addressing the discount at which the shares of HPE trade on a standalone basis relative to peers; and 2) improving execution and efficiencies to better align with best-in-class peers, like Dell and Cisco.”

Chatterjee also published a brutal table comparing the performance numbers of HPE against Dell, Cisco and NetApp. It showed that HPE generated only $494,000 per employee in revenue while Dell generated $885,000:

HPE stock popped upward recently after the Department of Justice dropped an investigation into its proposed acquisition of Juniper Networks. But still, since 2018, HPE stock has risen 48% to just above $21 per share. The S&P 500, meanwhile, rose 135%. That’s a dismal performance for a tech company that ought to be benefiting mightily from the mania around AI.

Elliott prefers to avoid proxy battles

Neri has been CEO for seven years. Meanwhile, six of HPE’s 12 board members have been there for 10 years or more. The chairman of the board, Patricia F. Russo, has been there since 2015. The implication is that it might be time for new blood.

But ousting Neri may not be Elliott’s plan. 

Another option would be for HPE to give Elliott a seat on the board and to agree on a strategy to turn the company around. In one of Elliott’s other adventures, its assault on the oil refinery company Phillips 66, the investment fund made a plea to shareholders that showed that it actually prefers to reach a mutal agreement with a company rather than escalate to all-out civil war via a shareholder proxy vote. 

“Over the last 15 years, we have collaborated with more than 200 companies to reach mutually beneficial solutions that enhance shareholder value. During this period, we have only had to pursue a U.S. proxy contest to this stage of the process three other times, making Phillips 66 an extreme outlier,” Elliott said at the time.

While it is not clear what, exactly, is going on between HPE and Elliott, it is likely that the board is in talks with its new stakeholder.

HPE told Fortune it welcomed the move: “HPE and our Board maintain an ongoing dialogue with our shareholders on a range of issues. While we do not comment on specific communications that we may have with any our shareholders, we value the constructive input of all of our shareholders and all of our other stakeholders.”

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Roubens Andy King

Previous Article
Jim Cramer Says RH “Feels Dicey”
  • Business

Jim Cramer Says RH “Feels Dicey”

  • July 6, 2025
  • Roubens Andy King
Read More
Next Article
Tired of Adobe subscriptions? This smart PDF tool is a Deal Days must-grab
  • Tech

Tired of Adobe subscriptions? This smart PDF tool is a Deal Days must-grab

  • July 6, 2025
  • Roubens Andy King
Read More
You May Also Like
Warren Buffett’s Berkshire Hathaway sold stocks and didn’t snap up bargains even as markets crumbled after ‘Liberation Day’
Read More
  • Finance Expert

Warren Buffett’s Berkshire Hathaway sold stocks and didn’t snap up bargains even as markets crumbled after ‘Liberation Day’

  • Roubens Andy King
  • August 2, 2025
‘I told him that wouldn’t fly’: My 90-year-old mother’s adviser pushed her to change her beneficiaries. What is going on?
Read More
  • Finance Expert

‘I told him that wouldn’t fly’: My 90-year-old mother’s adviser pushed her to change her beneficiaries. What is going on?

  • Roubens Andy King
  • August 2, 2025
I Asked ChatGPT What Would Happen if Trump Ended Income Taxes — There’s Good News and Bad News
Read More
  • Finance Expert

I Asked ChatGPT What Would Happen if Trump Ended Income Taxes — There’s Good News and Bad News

  • Roubens Andy King
  • August 2, 2025
How Boeing is quietly betting on a ‘brilliant’ 39-year old engineer—and setting the stage for a turnaround
Read More
  • Finance Expert

How Boeing is quietly betting on a ‘brilliant’ 39-year old engineer—and setting the stage for a turnaround

  • Roubens Andy King
  • August 2, 2025
‘The sky has not fallen — yet’: Is it time to start worrying about a U.S. recession?
Read More
  • Finance Expert

‘The sky has not fallen — yet’: Is it time to start worrying about a U.S. recession?

  • Roubens Andy King
  • August 2, 2025
European drugmakers fall after Trump raises stakes over US drug price cuts
Read More
  • Finance Expert

European drugmakers fall after Trump raises stakes over US drug price cuts

  • Roubens Andy King
  • August 2, 2025
A vacancy on the Fed is opening early as Trump urges board to ‘assume control’ if Powell doesn’t cut rates
Read More
  • Finance Expert

A vacancy on the Fed is opening early as Trump urges board to ‘assume control’ if Powell doesn’t cut rates

  • Roubens Andy King
  • August 2, 2025
‘I have never been asked for money before’: My friend wants to borrow ,600 to pay her rent. Do I say yes?
Read More
  • Finance Expert

‘I have never been asked for money before’: My friend wants to borrow $1,600 to pay her rent. Do I say yes?

  • Roubens Andy King
  • August 2, 2025

Recent Posts

  • Why Are BTC, ETH, XRP, SOL and DOGE All Down Today? It’s All About Macro
  • Amazon is selling a 'flattering' $37 dress for $12, that's 'comfortable and soft' and 'extremely versatile'
  • YouTube is testing Instagram-style collabs
  • Ethereum Exchange Reserves Just Hit A New 9-Year Low Amid Treasury Accumulations
  • Finalized no. 30 | Ethereum Foundation Blog
Featured Posts
  • Why Are BTC, ETH, XRP, SOL and DOGE All Down Today? It’s All About Macro 1
    Why Are BTC, ETH, XRP, SOL and DOGE All Down Today? It’s All About Macro
    • August 2, 2025
  • Amazon is selling a 'flattering'  dress for , that's 'comfortable and soft' and 'extremely versatile' 2
    Amazon is selling a 'flattering' $37 dress for $12, that's 'comfortable and soft' and 'extremely versatile'
    • August 2, 2025
  • YouTube is testing Instagram-style collabs 3
    YouTube is testing Instagram-style collabs
    • August 2, 2025
  • Ethereum Exchange Reserves Just Hit A New 9-Year Low Amid Treasury Accumulations 4
    Ethereum Exchange Reserves Just Hit A New 9-Year Low Amid Treasury Accumulations
    • August 2, 2025
  • Finalized no. 30 | Ethereum Foundation Blog 5
    Finalized no. 30 | Ethereum Foundation Blog
    • August 2, 2025
Recent Posts
  • Best Trucking Bookkeeping Services
    Best Trucking Bookkeeping Services
    • August 2, 2025
  • Mapletree Industrial Trust (SGX: ME8U): 2026 First Quarter Result
    Mapletree Industrial Trust (SGX: ME8U): 2026 First Quarter Result
    • August 2, 2025
  • Owens Corning (OC) Registers a Bigger Fall Than the Market: Important Facts to Note
    Owens Corning (OC) Registers a Bigger Fall Than the Market: Important Facts to Note
    • August 2, 2025
Categories
  • Business (1,321)
  • Crypto (716)
  • Economy (105)
  • Finance Expert (1,169)
  • Forex (716)
  • Invest News (1,605)
  • Investing (905)
  • Tech (1,307)
  • Trading (1,291)
  • Uncategorized (1)
  • Videos (776)

Subscribe

Subscribe now to our newsletter

Money Visa
  • Privacy Policy
  • DMCA
  • Terms of Use
Money & Invest Advices

Input your search keywords and press Enter.