TECH
02/05/2013 05:20 pm ET

HP Slams Dell Buyout: 'Dell Has A Very Tough Road Ahead'

Computer maker Dell announced on Tuesday that it will go private, and its chief rival Hewlett-Packard couldn't help but weigh in.

"Dell has a very tough road ahead," HP said in a statement. "The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell's ability to invest in new products and services will be extremely limited."

"Leveraged buyouts tend to leave existing customers and innovation at the curb," HP's statement continued. "We believe Dell's customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity."

Dell founder Michael Dell will buy back the company for $24.4 billion with help from private equity firm Silver Lake, Dell announced on Tuesday.

HP is one to talk: With fewer people buying PCs, HP is struggling too. Its stock price has plunged 65 percent over the past two years, and on the same day the Dell announcement was made, the business site Quartz reported that HP's board is exploring the idea of splitting up the company.

With tablets starting to eclipse PCs and Apple shaving away market share, Dell does seem to have a "tough road" ahead. But so does HP.

(Hat tip: CNNMoney.)

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