The rumour of Icahn Enterprises’s interest in purchasing Hewlett-Packard Company’s share booms the share value of the PC manufacturers. The news that Icahn Enterprises, is building a stake in the company regains the confidence of the investors.

The market Rumour:

The world’s leading PC maker company found an immediate rise in its share price as the news broke out that the renowned investor and business magnate, Icahn Enterprises, was planning an arrangement to buy up of Hewlett-Packard Company’s shares.

The rumour acts favourably to help in increasing its share value by 5% by pushing it up to $14.59 at Friday’s close.

Last month Hewlett-Packard Company faced a worst low in 10 years, after a huge write down of $8.8 billion associated with the $11.1 billion acquisition of the Autonomy, a British software company.

Back in October when Icahn had invested in 10% Netflix, Inc. (NASDAQ: NFLX) results a hike in the stock value by 21% at $79.24 per share.

How the market influenced with the rumour:

Icahn Enterprises, L.P. (NASDAQ: IEP)  having a net worth of $14 billion known as a renowned activist shareholder and corporate rider always in search of undervalued companies and increase their share value by buying the shares of the companies in huge quantities. At the time of Its Netflix, Inc. (NASDAQ: NFLX)’s purchase its stocks had lost two third of its last year’s value of $ 300 per share.

Hewlett-Packard Company (NYSE: HPQ)’s market capitalization is down to $27.9 billion with a stock also down by 44% in the last year. The company is blaming their recent acquisition of Autonomy for this huge loss, which results a decline in its share value as well as a low credit rating in the corporate market. Hewlett-Packard Company (NYSE: HPQ) requested the authority to investigate against the accounting standard improprieties, disclosure failures, and misrepresentation of fact prior to its acquisition.

The current quarter loses faced by the company amounted to $6.9 billion as compared to a last year’s profit of $200 million.