HP sells stake in China unit for $2.3b

Hewlett-Packard announced Thursday it was selling a 51 percent stake in its China-based server business, creating a joint venture with Tsinghua Holdings that will be a sector leader in China.

The US tech giant said it would sell the stake for $2.3 billion, creating a new business called H3C worth $4.5 billion that would be the leader in China in computer servers, storage and technology services.

The deal brings together HP with the investment arm of China's Tsinghua University in a company with some 8,000 employees and $3.1 billion in annual revenue.

"HP is making a bold move to win in today's China," said Meg Whitman, HP's chairman and chief executive.