H3C event behind the scenes: Mao-yu South trading plate HP Asset Sales Program

Hangzhou Hua San Communication Technology Co., Ltd. (hereinafter referred to as H3C) The thousands of protests continue to ferment. As of January 19, 2015, more than 90% people had signed the petition and signed a total of 4400.

January 21 Morning, H3C vice president and marketing director Wei in Hangzhou's H3C headquarters to make a public speech, he bluntly put forward: "Mao Yu South class." "Mao Yu Nan is H3C's parent company Hewlett-Packard newly appointed H3C chairman.

On the morning of January 22, H3C's parent company Hewlett-Packard told H3C to "dismiss H3C vice President Wei", but soon HP withdrew the notice. Later, Wei, who was dismissed, spoke again that afternoon and said: "Tomorrow, many lawyers from Zhejiang will come here to support us." ”

In response to the employee protests, Hewlett-Packard Public Relations Department January 22 to the 21st century economic reporter sent an e-mail reply: "HP recently released a number of organizational restructuring, a small number of employees expressed dissatisfaction with the adjustment, the management team has met with these employees to understand their concerns, Our customers and partners will not be disturbed. ”

According to reporters, HP is brewing a major asset sale, plans to combine its wholly-owned H3C company and HP China's server business into a new H3C, and sell 51% of them to Chinese companies, Hewlett-Packard Reserves 49% of the equity. The sale of this asset is worth as much as $ billions of, while the trader is Mao Huanan.

According to reporters understand that potential buyers include Central China Electronics (CEC). A third party close to the transaction of the senior Gold name (alias) to reporters that, in fact, many Chinese capital to buy h3c, but Mao-yu south of the Smart capital operation, to buy H3C Chinese capital out of a lot of problems.

Hewlett-Packard said in an email that it would not respond to plans to sell assets.

H3C regression

The establishment of nearly 12 years of H3C, it is possible to face the fourth time in the life of the main, fifth stock rights changes. In the thousands of protests on January 19, H3C employees expressed their opposition to "being sold".

In 2003, Huawei, in order to get rid of the legal dispute with Cisco, chose to set up a joint venture with 3Com company, the predecessor of Huawei 3Com, the H3C. In 2005 and 2006, Huawei, after a lawsuit and reconciliation, sold 51% of its shares to 3Com in two times, earning $910 million in 2006, H3C revenue to $712 million trillion and keeping its annual growth rate at 70% per cent.

In April 2010, Hewlett-Packard bought 3Com as a wholly-owned 2.7 billion dollar and became the sole shareholder of H3C. At this time H3C has become China's largest business company. At that time Hewlett-Packard in the enterprise-level market is not significant, H3C is seen as HP in the global enterprise-level market advanced bridgehead.

After the acquisition, Hewlett-Packard full packaging H3C for its overseas sales channels, and its own server, storage, security and other products packaged into the H3C network product system, and then launched a series of "Cloud Network integration" and other products. Since then, H3C did use HP's international channels to rapidly expand overseas markets and grow to be the network equipment maker after Cisco. According to Gartner, Hewlett-Packard ranked second in the global network equipment market for a number of consecutive quarters, with its market share of more than 8%, nearly three times times that of third-place juniper.

The H3C-hosted network is the only product line that keeps revenue growth in all of HP's business, with HP's other three product lines-servers, storage, and key business systems that have fallen for 4 consecutive years. According to HP's earnings statistics in 2014, HP's network products grew 9% compared with 2011, but the revenues of servers, storage, and key business systems shrank by 8%, 18%, and 56% respectively.

But now HP has opted to sell H3C. Because the foreign-controlled Chinese company is facing a crisis in the Chinese market.

To "Go to IoE", "Information security" become the mainstream voice of China's information, foreign investment background gradually let h3c difficult. 2014, China Mobile, China Telecom started the router, switch equipment collection, H3C almost no harvest. Prior to this, "China Telecom, moving the largest share of the calendar year is H3C, H3C has been occupying 70% of the market." "A H3C competitor told reporters:" But now, almost mainly tens of thousands of projects, h3c are very passive. "In addition to the operator market, government, finance, these two H3C profit sources have also been greatly affected."

According to Gartner's latest Global server Market report, in 2014 Q3, only China's server market in the global market maintained growth, but in China, HP server shipments fell 17.06% Year-on-year, from second place last year to fifth. And Huawei, Lenovo, wave and other enterprises growth services are more than 25%, and shipments have surpassed HP.

In fact, h3c talents, taxes, intellectual property, products, all in China, as long as there is a Chinese-owned identity, H3C embarrassment can be solved. Half a year ago, there was talk of "CEC will buy H3C hp 5 billion Dollars", although CEC, Hewlett-Packard officials are tight-lipped, but many CEC, H3C insiders have confirmed this rumor to reporters.

For HP, finding a Chinese buyer for H3C is the only way out. But how to get the most out of this capital operation is full of operational space.

Employee Ownership Desire Team Independence

Despite the expectation of nationalisation, the H3C team, which has experienced three changes in ownership and four stock rights over the past 12 years, is nervous about the coming capital operation, and if the capital operation consolidates existing teams, the most likely to be the more than 5,000 employees working in H3C.

January 16, 2015, Hewlett-Packard notified the appointment notice, by Hewlett-Packard China Region Chairman Mao Huanan successor H3C chairman.

Mao Yu South, in Taiwan known as "telecommunications Godfather", in 2008 took over the chairman of H3C and its parent company 3Com, the 2010 HP wholly-owned acquisition of 3Com, Mao Yu south to retire. In August 2013, HP once again hired Mao Huanan to become chairman of HP China.

But it is this experience, became Mao Yu South was h3c employees boycott reason. January 19, 2015, H3C near thousands of employees in Hangzhou, Beijing, held protests. H3C circulated in the "to all the staff of the letter," wrote: "2010 when the company shares change, Mao Yu South as the chairman of the H3C at that time, grabbed 26.5 million of dollars of huge benefits, employees get nothing." 2015 cents is back, ready to get another one, can we accept it? ”

The employee's proposal on the scene clearly reads: "Convene the Staff Congress as soon as possible, start the labor negotiation, clear the employee benefit, realize the employee shareholding." According to H3C insiders, the number of signed employees has exceeded 4400, accounting for a total of nearly 90%.

In addition to employees, H3C's existing management team has reason to resist Mao-Yu-nan.

The H3C insiders told reporters the contents of HP's appointment notice Email: "Wu Jing is responsible for the integrated business management, there is no mention of the CEO position, but COO, the CFO but also expressed very clear." According to HP style, this is to the whole company's team to make a big adjustment, which endangers h3c more than 10 years to survive the fundamental. ”

An "old employee" who worked in H3C from the beginning of the establishment told reporters: "H3C was originally founded when there were 1000 people, 12 years later, this group of elderly people have more than 700 in the company." Although several times the master, but we have been operating independently, the staff are very stable, this is the fundamental development of the company. ”

However, after the acquisition of HP in 2010, H3C's storage, security, video and other product lines were cut off by HP, which is one of the main reasons for H3C's Sheng leaving H3C for years. Sheng led H3C Original class set up the Yu-vision technology, Depew technology, the current Yu-vision technology has become the third largest video surveillance enterprises.

After Sheng, h3c into Wu Jing, Cao Xiangying era. Called Iron Wu Jingshun successor CEO, responsible for the market, COO Cao Xiangying leading technology and research and development, because the main network product team is still complete and independent operation, H3C in the market is still strong no horse.

However, a number of people close to H3c told reporters: "HP after the acquisition, H3C team has not been so united, the technical origin of the Cao Xiangying is more recognized by Mao Yu South, and the market's ' Iron Lady ' Wu Jing biography, the situation slightly embarrassed." ”

On the morning of January 21, H3C Vice president and marketing President Wei in Hangzhou for a 30-minute speech, making two big demands: "Fight for the rights and interests of employees, Mao Yu South class." "Wei even publicly stated:" If the protest is successful, then I will resign the marketing department president, transfer to staff rights and interests services. In the speech, he also repeatedly called "H3C unite".

But HP has not compromised at the moment. January 22, H3C insiders said, "Today, HP's HR sent a letter to dismiss Wei, but then HP found that this is not legal, can only be abandoned." ”

"Hewlett-Packard recently released a number of organizational restructuring to further promote the growth and diversification of H3C in China and the international market," the reporter said in an interview with Hewlett-Packard for H3C staff protests. A handful of employees have expressed dissatisfaction with the adjustment, and the management team has met with these employees to understand their concerns, and our customers and partners will not be disturbed. ”

HP's Wishful Thinking

Mao-Yu-nan, at the heart of the storm, has not made public appearances. Because, Mao Yu south to face not only is the H3C staff's request, he also must for HP in China's entire capital operation plan to operate the plate.

HP is reluctant to let Mao Yu South class. Because Mao-Yu south to HP developed a ' lucrative ' operation plan, he deserves to be a master of the capital industry. "On the day of the h3c of thousands of people protesting, the person known as Kim's name told reporters that it was this program that caused CEC to be tricky, so it was almost 1 years and there was no result."

Kim told reporters that HP plans to combine its wholly-owned H3C company and HP China's server business into a new H3C, and sell a 51% stake in the new h3c to Chinese companies, with HP retaining a 49% per cent stake. "In this way, HP saved H3C, as well as saving its own server business." ”

For CEC, H3C is also a rare subject. The CEC, which owns 37 two-level enterprises and 16 holding listed companies, has identified three core business of integrated circuits, new flat panel display, information security and service as early as 2013, which has witnessed the h3c of the whole informatization process in China, and can become the center of CEC Information Security business platform.

Kim told reporters: "In fact, not only CEC, many want to cloud computing, large data, information security and other areas of a big company, have ideas about H3C." However, HP's sales plan is tricky and only CEC is trying to negotiate. ”

It is understood that HP plans to sell 51% of the stake to 2-5 Chinese companies, so that these companies basically share the 51% of the shares. HP, which holds 49% per cent of its shares, has become the largest shareholder in the new company, and HP has asked to hold half the board of directors of the new company and appoint the chairman.

"In this way, the new company has a domestic holdings of clothing, can be in the current environment to obtain government orders." Hewlett-Packard, after selling stakes, also returned a lot of money to support HP's ' recovery plan '. More importantly, HP continues to maintain control over the new company. In addition, HP also plans to complete the settlement of equity and capital payments abroad, so as to achieve the purpose of tax avoidance. "The gold name tells the Reporter:" This plan, is from Mao Yu South's handwriting, he really is the capital operation Master. ”

Golden name told reporters: "The competent department of the State Council, in fact, has expressly approved, to achieve H3C nationalization, the ministry also has a clear report." Mao Huanan probably know this, just lion. ”

"The acquisition of H3C not only brings very beautiful statements, but also completes the tasks of the national authorities and receives some policy benefits." "The gold name points out that, however, if implemented according to this plan, the Chinese enterprises that take over will become HP's eyes."

CEC subsidiaries told reporters: "The group (CEC) did quite a long time to prepare for the H3C Investment Analysis report." But there has been little progress, and the attitude of the leadership is ambiguous, ' acceptable and not acceptable '. In addition, the investment report also compares the form, only writes the investment interest, but the feasibility analysis is few. "The subsidiary has close business dealings with H3C.

"The competent department does not limit the acquisition of H3C time, we can wait." CEC is waiting, there are several similar enterprises, also waiting. "Gold Name:" But HP can't afford to wait, the longer the time, HP lost more. Therefore, the boycott of Mao-Yu South, not only h3c expectations, but also some of the domestic capital of the voice. ”

But at the same time, the gold name also thought: "The game, has just begun." Once HP's plan is not so tricky, domestic capital is likely to hit, after all, H3C is tempting. ”