Tags: Whitman | Autonomy | Hewlett-Packard | misleading

Autonomy's Lynch Says Hewlett-Packard Misleading Shareholders

Wednesday, 19 Mar 2014 09:16 AM

Autonomy Corp. founder Mike Lynch, accused after his company’s acquisition by Hewlett-Packard Co. of miscategorizing revenue, said the U.S. computer maker is misleading shareholders and smearing management of the U.K. software firm.

Lynch made the comments in an open letter, released today by his public relations company to Hewlett-Packard shareholders before their annual meeting, saying he had “serious concerns about the way HP has conducted this affair.”

“HP has not provided information or evidence to the Autonomy team to substantiate any allegation,” Lynch said.

HP Chief Executive Officer Meg Whitman “has made incendiary and defamatory accusations on behalf of her company,” Lynch said in the letter. “She should now present the detailed evidence that justifies those allegations.”

An HP representative in Europe had no immediate comment on the matter.

Hewlett-Packard took an $8.8 billion writedown in 2012 on the deal, citing activities such as booking hardware sales as software among instances of “serious accounting improprieties, disclosure failures and outright misrepresentations.”

Lynch has denied accusations of malpractice and said Autonomy struggled because Hewlett-Packard stymied the Cambridge, England-based software company’s sales.

The Autonomy deal was negotiated by Whitman’s predecessor, Leo Apotheker, and Whitman took her post less than two weeks before the sale closed. Shareholders have sued Hewlett-Packard over the writedown, alleging its board and Whitman ignored warnings of accounting irregularities.

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Autonomy Corp. founder Mike Lynch, accused after his company's acquisition by Hewlett-Packard Co. of miscategorizing revenue, said the U.S. computer maker is misleading shareholders and smearing management of the U.K. software firm.
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2014-16-19
Wednesday, 19 Mar 2014 09:16 AM
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