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HP stock falls on news of acquisition fraud

Original post made on Nov 21, 2012

Palo Alto-based HP said Tuesday that "accounting improprieties, misrepresentations and disclosure failures" caused it to massively overpay for the British software company Autonomy Inc. last year, which it bought for nearly $11 billion.

Read the full story here Web Link posted Wednesday, November 21, 2012, 9:44 AM

Comments (7)

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Posted by resident
a resident of College Terrace
on Nov 21, 2012 at 11:27 am

HP has screwed up a lot in the last few years. There is a lot of blame to spread around on this one, though. HP reportedly hired Deloitte, one of the world's biggest auditing companies, to evaluate Autonomy before the purchase. I expect a big lawsuit between the 2 companies and maybe HP can get some of their money back.

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Posted by Ducatigirl
a resident of Old Palo Alto
on Nov 21, 2012 at 1:48 pm

Seems like HP has steadily gone downhill since Carly Fiorina was CEO. It has just been one bad decision after another. It is really sad to watch a venerable company go downhill like this.

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Posted by resident
a resident of College Terrace
on Nov 21, 2012 at 1:53 pm

Reports in various business newspapers today are saying that HP's explanation is either a hoax or at most a gross exaggeration to coverup poor management and poor business decisions by HP. Yes, HP did lose a ton of money on this deal, but they could have figured out ahead of time that the deal stunk.

Further, the real reason for HP's stock price plunge is a poor quarterly earnings report. Autonomy may be just a smoke screen for the mass media, but professional bankers and investors aren't buying it.

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Posted by DeeDee
a resident of Crescent Park
on Nov 21, 2012 at 4:32 pm

HP simply illustrating - once again - the fallacy of the past 30 years of being led by the "Best and the Brightest" in our politics and our economy...

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Posted by Silly
a resident of Embarcadero Oaks/Leland
on Nov 21, 2012 at 9:58 pm

There were 15 big-name advisers on the deal -- auditors, law firms and bankers -- on which $100,000,000 was spent to check out the deal. HP decided to ignore its own CFO and Larry Ellison who said the Autonomy was way over-valued and NOW they're demanding an FBI, SEC and Serious Frauds investigation??

The best comment was along the lines of "They bought a Rolls-Royce, drove it around for more than a year and only then did they realize they'd gotten a Yugo?"

Don't forget they wrote down EDS last quarter. What's left next time?

I'm SO glad Meg is only screwing up HP and not the whole state of CA.

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Posted by TomRome
a resident of Midtown
on Nov 25, 2012 at 5:34 pm

Not surprised at all. HP has been making one bad decision after another.
They better get rid of Meg and do some top level house cleaning soon. They need someone who is ready to make some hard and very drastic changes to insure HP has a future.

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Posted by Crescent Park Dad
a resident of Crescent Park
on Nov 25, 2012 at 10:59 pm

@ silly & @ TomRome: At least read up on what happened and get your facts straight before going off and declaring that HP should rid itself of MW over this.

The previous CEO was the one who signed off on the acquisition. MW had nothing to do with it.

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