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Here’s How Much HP’s Split Is Going to Cost

May 22, 2015, 12:05 PM UTC
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When Hewlett-Packard announced its upcoming breakup last year, investors cheered.

But shareholders might be having second thoughts after the company announced Thursday that the split will cost the firm $400 million to $450 million more than previously announced in costs like duplicating of back-office positions

The breakup, which will turn Hewlett-Packard into two companies, the cash-flow-heavy but shrinking PC and printer business, and more growth-oriented enterprise services firm. HP had already said the transaction would cost the firm $1.8 billion in restructuring $950 million in taxes.

Despite the higher price tag, analysts are still pleased with the coming split. Toni Sacconaghi, an analyst with Bernstein Research, said that the two new companies will “offer distinct value propositions,” according to a report in the Wall Street Journal.