HP says Acquired Company Lied about Finances

By: Associated Press Email
By: Associated Press Email

NEW YORK (AP) - Hewlett-Packard says a British company it bought for $10 billion last year lied about its finances, resulting in a massive write-down of the value of the business.

HP is avoiding calling it a fraud, but says there were "serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation PLC."

HP is taking an $8.8 billion charge in its latest quarter to align the accounting value of Autonomy with its real value. It said most of that charge was due to the fictional accounting at Autonomy.

The revelation is another blow for HP, which is struggling to reinvent itself as PC sales shrink.

Among other things, Autonomy makes search engines that help companies find vital information stored across computer networks.

Hewlett-Packard Co. shares sank more than 8 percent to $12.20 in premarket trading.


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to comments@kbtx.com. Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-188
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 180162141 - kbtx.com/a?a=180162141
Gray Television, Inc.