Hewlett-Packard has named NCR chief executive Mark Hurd to lead the world's Number 2 computer maker, choosing a veteran technology manufacturing executive to take the place of ousted CEO and marketing expert Carly Fiorina.
HP shares rose 10 per cent on reports of Mr Hurd's appointment, which analysts saw as positive since it ended the uncertainty associated with the executive search at the embattled company.
HP confirmed the news after the market closed. NCR stock dropped 17 per cent during the day on the departure of Mr Hurd (48) who is credited with reversing the declining fortunes of the automatic teller machine maker and data warehouse company, which is a fraction of HP's size.
Before yesterday's drop, NCR shares had more than quadrupled in price during Mr Hurd's time as CEO.
Mr Hurd must lead HP through fierce competitive battles with IBM on the high-end of the technology industry, Dell on the low end and with Lexmark International in its mainstay printer business.
Many investors still question the decision to buy Compaq Computer in May 2002 and argue that HP should spin off its lucrative printer division or divest itself of its computer, data storage, computer services and software businesses.
HP's board pushed out Ms Fiorina in February after she failed to produce the profit growth she had promised in arguing for the controversial $19 billion acquisition of Compaq Computer Corp.
She made the company bigger through that acquisition but subsequently failed to deliver consistent, profitable growth. During Ms Fiorina's rocky five-year tenure, HP's stock price declined by more than half and she oversaw the departure of several high-level executives, often to rivals such as data storage firm EMC Corp.