Meg Whitman named new CEO of HP

Hewlett-Packard has announced that Meg Whitman, the former head of eBay, has been appointed as the new chief executive of the company after Leo Apotheker stepped down from the lead role.

The decision to replace Mr Apotheker, who only took over as chief executive of HP less than 12 months ago, was announced after a board meeting.

Speculation surrounding Mr Apotheker's future in the company has been rife over the past few days, after share prices dropped and sales plunged under his leadership.

In 2008, Ms Whitman, who once ran for governor of California, stepped down from eBay after playing a key role in helping the company grow into a global force.

The latest shake-up by HP also saw Ray Lane being appointed as the new executive chairman of the board of directors.

Mr Lane said in a statement: "We are fortunate to have someone of Meg Whitman's calibre and experience to step up to lead HP.

"We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead."

Ms Whitman, who has been a member of the HP board since January, said in a statement: "I am honoured and excited to lead HP. I believe HP matters - it matters to Silicon Valley, California, the country and the world."

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