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HP pulls out of CMC race

Our Bureau

NEW DELHI, Sept. 6

COMPUTING giant Hewlett-Packard Co (HP) has withdrawn from participating in the disinvestment of State-owned CMC Ltd, citing ``limited synergies'' between the two companies.

``We withdrew from this opportunity several weeks ago since we felt that there were limited synergies,'' the HP India President, Mr Arun Thiagarajan, said.

The Government is selling 57.31 per cent of its 83.31 per cent stake in CMC to a strategic partner. Earlier, over 20 companies had reportedly expressed interest in acquiring the Government's stake in CMC.

HP had on Monday announced that it is buying rival Compaq in a $25-billion, all-stock deal. HP officials said the acquisition of Compaq has nothing to do with the decision to withdraw from participating in the disinvestment of CMC.

HP is the second company to have pulled out from the race for CMC stake. A Delhi-based software firm, Saiinfo, was earlier reported to have backed out from participating in the disinvestment after expressing an interest.