Elliott Management's $1.5 billion investment in Hewlett Packard Enterprise poses challenges for CEO Antonio Neri, who faces pressure given the firm's history of ousting executives. In March, HPE experienced a significant drop in stock value of nearly 16% due to an accounting error in inventory pricing. Although both companies remain silent on the negotiations, it's prudent to explore Elliott's potential demands from HPE. The silence from both sides reflects a tense dynamic as Neri navigates this precarious situation.
"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.
Elliott Management's history shows that fourteen chief executives have been ousted after the firm took stakes in their companies and demanded negotiations with their boards.
Hewlett Packard Enterprise's stock dropped nearly 16% following the company's Q1 earnings report, which was negatively impacted by an accounting mistake regarding inventory prices.
Neither Elliott Management nor Hewlett Packard Enterprise provided specific comments regarding the ongoing situation between them, maintaining complete silence on the negotiations.
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