Why Hewlett-Packard Enterprise Shares Opened Lower Today

Shares of Hewlett-Packard Enterprise (NYSE: HPE) opened much lower today at $14.13, compared to yesterday's close of $18.06. That might appear to be quite a drop, but the price change is only due to the company completing its spinoff and merger of its software business with Micro Focus.

The $8.8 billion deal was originally announced in September 2016, as part of CEO Meg Whitman's ongoing efforts to make HPE a slimmer and more agile company. HPE received a $2.5 billion cash payment and will retain 50.1% ownership (approximately 222 million American depositary shares) of the new combined company.

Image source: HPE.

Source: Fool.com