Hewlett-Packard shares fall 20% on bid for Autonomy

HP's future plans also include no longer selling smartphones and tablet computers and refocusing on selling software.

HP shares fell 20% in Friday trading to close at $23.58.

HP's £7.1bn ($11.7bn) offer for Autonomy, accepted by Autonomy's board, is 64% above the firm's market value.

HP's PC business is the world's largest, but by the end of next year, HP computers could be sold under another company's name.

'Strong starting point'

Analysts say the move underscores Apple's dominance in smartphones and tablets with its iPhone and iPad products.

"Apple single-handedly knocked HP out of the PC, smartphone and tablet business," said Gleacher & Co analyst Brian Marshall.

The new strategy means that HP, which will continue to sell servers and other equipment to business customers, will follow the path taken by IBM in 2005, sidelining PC hardware in favour of more profitable software and services; Kazinform cites BBC.

To learn more go to www.bbc.co.uk