6°c Clear
20°c Sunny
The Canadian Press - ONLINE EDITION
UK authorities investigating HP's allegations of financial misconduct in Autonomy deal
PALO ALTO, Calif. - British authorities have opened an investigation into Hewlett-Packard's allegations that the personal computer maker was duped when it bought business software maker Autonomy, according to regulatory documents filed Monday.
The inquiry by the U.K. Serious Fraud Office is the latest legal fallout from a deal that has saddled Hewlett-Packard Co. with massive losses and depressed its stock price. The U.S. Justice Department started looking into the matter late last year, shortly after HP accused Autonomy employees of fabricating sales in a ruse that drove up the company's sale price.
Autonomy's founder and former CEO, Mike Lynch, has stridently denied HP's allegations and demanded that the company provide more evidence to support its allegations. HP, which is based in Palo Alto, Calif., has repeatedly said that it is co-operating with legal authorities looking into the allegations.
HP bought U.K.-based Autonomy for about $10 billion in 2011 and then wrote off $8.8 billion of that amount late last year in a move that stunned Wall Street.
At least eight lawsuits have been filed by HP shareholders alleging that the company's board and management botched the Autonomy deal and concealed vital information before the staggering write-off.
The backlash also threatens to upend HP's board. Two shareholder advisory firms are recommending votes against the re-election of HP's two longest-serving directors, John Hammergren and G. Kennedy Thompson, at the company's March 20 annual meeting. Institutional Shareholder Services and Glass Lewis & Co. say the two directors should be ousted for shoddy oversight of the Autonomy deal and other recent HP acquisitions that have turned out badly.
ISS also is recommending HP shareholders oppose the re-election of company Chairman Ray Lane. Glass Lewis is pushing for the removal of two other HP directors, Marc Andreessen and Rajiv Gupta, whose tenures on the board are the next longest after Hammergren and Thompson.
In a separate regulatory filing Monday, HP urged shareholders to re-elect all 11 board members.
"Losing some of our directors in an abrupt and disorderly manner could undermine our efforts to stabilize the company," Gupta, the lead independent director on HP's board, warned in a letter to shareholders.
More Business
- Back to Top
- Return to Business
More Business
(1 of 12 articles for today)
Bank of England policymakers remain divided on whether to expand program of economic stimulus
4:13 AM 0LONDON - The Bank of England's policymakers remain divided on whether to provide more stimulus to the flat-lining economy.
The minutes ...
Poll
Most Popular Business
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Creative industries can fuel a city's economic engine
- Manitoba Movers
- A look at how the struggling French economy compares to Germany's and Britain's
- German software firm SAP to recruit hundreds of people with autism for specialist positions
- Bridging the gap
- Ex-Ford Motors executives charged in tortures of union workers during Argentina's dictatorship
- North American markets climb on gold, energy gains and positive Fed speeches
- A closer look at the 3 new game consoles from Microsoft, Nintendo and Sony
- With Apple CEO's Senate turn, lawmakers see possible spur to action on fixing US tax code
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- Driving downtown development
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Creative industries can fuel a city's economic engine
- Bridging the gap
- Transcona transformation
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Chinese court sentences entrepreneur to death in latest crackdown on underground banking
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Raising the rent is a good sign
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Ex-'Pegger seeks to grow local businesses
- German software firm SAP to recruit hundreds of people with autism for specialist positions
- Bridging the gap
- Creative industries can fuel a city's economic engine
- There are lots of I's in 'team'
- Tougher food-safety rules in the works: Agriculture Minister Gerry Ritz
- Boreal Forest conservation negotiations end in failure after three years
- Portage, Winnipeg law firms join forces
- Experts urge buyers to take precautions when buying used cars and trucks
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Ex-'Pegger seeks to grow local businesses
- Diversification spurs Exchange Income's growth
- Bridging the gap
- Driving downtown development
- Late deal in workplace sex-harassment case
- Transcona transformation
- More than a new boss
- There are lots of I's in 'team'
- Viterra plans $20 million capacity upgrade at four Saskatchewan grain terminals
- German software firm SAP to recruit hundreds of people with autism for specialist positions
- Transcona transformation
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Winnipeg Boeing plant set to expand
- Local boy leads Great-West
- Ex-'Pegger seeks to grow local businesses
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.