Quantcast
Latest Stories

Exec embroiled in HP-Autonomy mess lashes out

By

SAN FRANCISCO — An executive vilified by Hewlett-Packard Co. on allegations of an accounting ruse is escalating his counter-attack on the company accusing him.

In a letter to HP’s board released Tuesday, former Autonomy CEO Mike Lynch fiercely defended his integrity. He also questions whether HP is using the charges of financial shenanigans to cover up damage caused by its own ineptitude.

HP fired back with a statement that predicted its findings of misconduct will be proven in anticipated legal proceedings about the dispute.

Lynch’s missive represented his most extensive remarks since HP accused him last week of deceiving the company about the growth of Autonomy, a British business software maker that HP bought for $10 billion last year. He had previously denied HP’s accusations in interviews with various news organizations.

HP absorbed an $8.8 billion charge to reflect Autonomy isn’t worth what the company paid. About $5 billion of that charge stemmed from improper accounting, according to HP.

“Can HP really state that no part of the $5 billion write down was, or should be, attributed to HP’s operational and financial mismanagement of Autonomy since the acquisition?” Lynch wondered in his letter. He demanded that HP’s board provide more specifics about how it arrived at its calculations.

The Autonomy mess has deepened a steep decline in HP’s stock price, which has cut the Palo Alto, California, company’s market value in half since the beginning of the year. HP had already been struggling because its personal computer and printer businesses have been faltering as more people buy smartphones and tablet computers. HP’s stock fell 38 cents Tuesday to close at $12.36.

HP CEO Meg Whitman said last week that she fired Lynch in May because Autonomy wasn’t hitting its financial targets. After Lynch departed, Whitman said a whistleblower triggered an extensive investigation that culminated in HP’s conclusion that it had been duped before it agreed to buy the British company. HP said it has handed its findings over to securities regulators in the U.S. and the U.K., as well as the U.S Justice Department.

Even if authorities don’t file charges, HP said it plans to take legal action against the people it believes manipulated Autonomy’s finances.

“We look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury,” HP said in a statement. The honorific in HP’s statement refers to Lynch’s doctorate in computing.

HP, meanwhile, faces at least one shareholder lawsuit. On Monday, a stockholder who owns 200 shares accused HP of concealing problems with Autonomy and other acquisition.

Lynch said he wished he had been given a chance to help “make HP great again. I have been truly saddened by the events of the past months, and am shocked and appalled by the events of the past week.”


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

2 teenagers killed in Mlang, North Cotabato 23 mins elapsed No sympathy from North Korea over ferry disaster 26 mins elapsed 4 French journalists freed from Syria captors home 29 mins elapsed Britain’s baby Prince George visits Australian zoo 32 mins elapsed De Lima on Gigi Reyes: Let’s wait and see 38 mins elapsed South Korean relatives divided over whether to raise ferry 1 hour elapsed Pacquiao courtesy call to Aquino set for Monday 1 hour elapsed Road accident kills 36 in southern Pakistan 2 hours elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Hewlett Packard Co , HP-Autonomy , Mike Lynch , Palo Alto



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. Nasa’s moon-orbiting robot crashes down
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens seethe over Aquino’s ‘sacrifice’ message
  4. Facebook rolls out ‘nearby friends’ feature
  5. Filipinos #PrayForSouthKorea
  6. Nokia recalls 30,000 chargers for Lumia 2520 tablet
  7. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  8. Netizens pay respects to Gabriel Garcia Marquez
  9. Taylor Swift tries video blogging, crashes into fan’s bridal shower
  10. Aquino may be ousted for cybercrime law, says lawmaker
  1. Did Deniece Cornejo lambast Vhong Navarro on social media?
  2. Mommy Dionisia Pacquiao scores, takes over social media
  3. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  4. Memes flourish after Pacquiao victory
  5. Netizens react to Pacquiao’s victory over Bradley
  6. IT technician found guilty of defrauding firm of P130,000
  7. Netizens seethe over Aquino’s ‘sacrifice’ message
  8. Philippines may watch ‘blood moon’ online
  9. Nude and so dangerous
  10. Online-addicted man arrested over son’s death
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  7. Russia tries to curb Crimean prosecutor’s Internet fame
  8. Memes flourish after Pacquiao victory
  9. Why didn’t missing jet passengers use their cellphones?
  10. Netizens thank Capa for Lee arrest

News

  • 2 teenagers killed in Mlang, North Cotabato
  • No sympathy from North Korea over ferry disaster
  • 4 French journalists freed from Syria captors home
  • De Lima on Gigi Reyes: Let’s wait and see
  • South Korean relatives divided over whether to raise ferry
  • Sports

  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Lifestyle

  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Advertisement
    Marketplace