Menu
HP's Autonomy acquisition under investigation in the UK

HP's Autonomy acquisition under investigation in the UK

The US Justice Department is already investigating the controversial acquisition

Hewlett-Packard's purchase of Autonomy is under investigation by the U.K. Serious Fraud Office, the company said in a regulatory filing ahead of its annual meeting where there are expected to be challenges to the re-election of Chairman Ray Lane and two board members.

HP said in November it was taking a $US8.8 billion charge as a result of what it called serious accounting improprieties at U.K. software company Autonomy before it acquired the firm in 2011. In December, HP said that it was informed a month earlier by representatives of the U.S. Department of Justice that it had opened an investigation relating to Autonomy.

"On February 6, 2013, representatives of the U.K. Serious Fraud Office advised HP that they had also opened an investigation relating to Autonomy," the company said in the filing on Monday.

The company previously provided information to the U.K. Serious Fraud Office, the U.S. DOJ and the U.S. Securities and Exchange Commission related to "the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy," and is cooperating with all three investigating agencies, HP said.

Autonomy founder Mike Lynch rejected all allegations of impropriety in an open letter to HP's board in November. "It was shocking that HP put non-specific but highly damaging allegations into the public domain without prior notification or contact with me, as former CEO of Autonomy," he wrote in the letter.

HP is involved in a number of shareholder suits, relating to, among other things, its November announcement of the charge relating to its Autonomy acquisition, it said in the filing.

Investor advisors are also asking for the removal of some board members and the independent auditor, Ernst & Young at HP's annual meeting of shareholders on March 20. They blame the directors for inadequate oversight of the Autonomy acquisition.

CtW Investment Group, which works with pension funds sponsored by affiliates of Change to Win -- a federation of unions representing over six million members, asked HP shareholders last month to vote against the re-election of directors G. Kennedy Thompson and John L. Hammergren, and the ratification of Ernst & Young as independent auditor at the meeting. Institutional Shareholder Services has also recommended that shareholders vote against the re-election of Lane, Hammergren, and Thompson.

"Losing some of our directors in an abrupt and disorderly manner could undermine our efforts to stabilize the company," HP lead independent director Rajiv L. Gupta wrote in a letter to shareholders on Monday. "What the company needs now is stability and consistency of leadership so that the Board and the management team can devote all of their focus and energy towards executing on our strategic plan."

HP's board has in a separate letter recommended to shareholders to vote for each of the nominees to the board, including Lane, Thompson and Hammergren. It also recommended ratification of Ernst & Young as independent auditor.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesservicesHewlett-Packardhardware systemsAutonomySEC Filings

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments