Tuesday, November 20, 2012

"Outright misrepresentations"

That's how Meg Whitman, H-P CEO, characterizes the statements of Autonomy, a software company acquired by H-P for $10 billion in 2011.  She claimed that Autonomy mischaracterized some sales of low-margin hardware as software and recognized some deals with partners as revenue even when a customer never bought the product.  These representations were accepted as true and valid by KPMG, Deloitte, Barclays and Perella Weinberg, firms which monitored the deal on H-P's behalf.  H-P's allegations are reportedly based on the statements of a former Autonomy executive who now works for H-P.  

This acquisition was made when H-P was led by Leo Apotheker, who was fired by H-P less than a year after joining the company.  Apotheker's reputation was also tarnished when SAP did not renew his contract as co-CEO.  

How much longer will H-P be around?

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