HP Planning Networking, Software, Storage Business Investments

Jan 14 (Reuters) – Hewlett-Packard Co (NYSE:HPQ) is
formulating what it calls a "bold" plan for its future under
new chief executive Leo Apotheker, but dismissed a report that
it would reshuffle its top executives.

The world’s No. 1 U.S. computer maker, which has been
roiled since the surprise exit of former CEO Mark Hurd in
August, is expected to set out a new strategy soon, but the
company said it would make the plan public in its own time.

Earlier on Friday, the Wall Street Journal, citing unnamed
sources, published a report that H-P planned to invest more in
its software, networking and storage businesses, while
promoting a key executive to vice chairman.

"Speculation today about H-P is being passed off as fact
and is not accurate," an H-P spokeswoman said in an e-mailed
statement. "H-P is formulating a bold, solid plan for its
future, a plan it will share with its employees, shareholders,
customers and partners in due course, and certainly not in
response to speculation."

The Journal report said Ann Livermore, the head of H-P’s
$57 billion enterprise business, would become vice chairman and
a member of the board.

It said the enterprise business would then be split up,
with executive vice presidents Dave Donatelli and Tom Hogan
running the equipment and the services businesses
respectively.

The report said Apotheker is working with members of H-P’s
board to draw up the plan, which could be made public around
March to coincide with H-P’s annual shareholders meeting.

The former head of German software company SAP (DE:SAPG),
Apotheker took over as H-P’s CEO in November. Hurd, who left
under a cloud following a scandal involving a female
contractor, is now an executive at rival Oracle Corp (NASDAQ:ORCL).
(Reporting by Nadia Damouni, Ritsuko Ando and Bill Rigby;
editing by Andre Grenon, Gary Hill)